The State Council of the People's Republic of China formally dissolved the Tibetan government in a marked move against the backdrop of the 1959 Tibetan Uprising. In March 1959, a revolt erupted in Lhasa as tensions peaked between Tibetan nationalists and the newly imposed Chinese administration. Rumors spread that the Tibetan spiritual leader, the Dalai Lama, was in danger, prompting thousands of Tibetans to rally for his protection. The uprising escalated, leading to violent clashes with Chinese troops and intensified military responses from the Chinese government.

As the situation deteriorated, the Tibetan leaders and local authorities found themselves increasingly marginalized, unable to negotiate effectively with Chinese officials. The dissolution of the Tibetan government solidified the central government's control over the region, repressing any semblance of local governance and autonomy. The announcement was a strategic move to eliminate the established political structure in Tibet, thereby minimizing dissent and resistance to the Chinese Communist Party's authority.

Following the dissolution, the Chinese government initiated a campaign to integrate Tibet into the People's Republic of China, which included the establishment of direct governance and the implementation of reforms geared towards socio-economic changes in Tibetan society. The decision led to significant cultural and demographic transformations in Tibet, leaving lasting impacts on Tibetan identity and society.