Dhanyawaddy (Burmese: ဓညဝတီ; Pali: Dhaññavatī) was the capital of the first Arakanese Kingdom, located in what is now Northern Rakhine State, Myanmar.

Like many of its successors, the Kingdom of Dhanyawadi was based on trade between the East (pre-Pagan Myanmar, Pyu, China, the Mons), and the West (Indian subcontinent).

Arakanese legends claim that a Sakya clan of Buddha are founder of Dhanyawadi Kingdom[citation needed].

Most Arakanese chronicles claim and agree that Buddhism, which emerged during the reign of King Sanda Suriya, who dedicated the revered Maha Muni Image in B.C.

Ancient Arakanese legends provide detailed accounts of King Sanda Suriya, who established the great Maha Muni shrine when Lord Buddha visited Arakan in 123 Bowdaw Inzana Era, 25 years before his Mahaparinibbana.

The Buddha blessed the site atop Thelagiri Hill, located to the east of Kyauktaw on the banks of the Kaladan River.

Upon departing, the Buddha left one of his sacred teeth, which emitted brilliant rays of light in all directions, and entrusted it to the Venerable Ananda, his beloved cousin.

Its kings shall remain of the ancient Kshatriya lineage, particularly descended from our Sakya race, originating from Ajjuna, the hermit-king of Kapilavastu.

In Dhanyawadi, the noblemen and the affluent donated their wealth and possessions (mainly gold and silver), to be melted and cast into an image of the Buddha.

The Arakanese claim that Buddha image disappeared – either from the temple, or when the Burmese tried to load it onto an awaiting barge at Thare Chaung.