Vajrayāna, Mantrayāna, Esoteric Buddhism and Tantric Buddhism refer to the Buddhist tradition of Tantra, an esoteric system of beliefs and practices that developed in medieval India.
Vajrayāna is usually translated as Diamond Vehicle or Thunderbolt Vehicle, referring to the Vajra, a mythical weapon which is also used as a ritual implement.
According to Vajrayāna scriptures, the term Vajrayāna refers to one of three vehicles or routes to enlightenment, the other two being the Śrāvakayāna (also known as the Hīnayāna) and Mahāyāna.
Founded by Indian Mahāsiddhas, Vajrayāna subscribes to the literature known as the Buddhist Tantras.
Elements of Tantric Buddhism can be traced back to groups of wandering yogis called mahasiddhas (great adepts). According to Reynolds (2007), the mahasiddhas date to the medieval period in North India (3–13 cen. CE), and used methods that were radically different than those used in Buddhist monasteries including living in forests and caves and practiced meditation in charnel grounds similar to those practiced by Shaiva Kapalika ascetics. These yogic circles came together in tantric feasts (ganachakra) often in sacred sites (pitha) and places (ksetra) which included dancing, singing, sex rites and the ingestion of taboo substances like alcohol, urine, meat, etc. It is interesting to note that at least two of the Mahasiddhas given in the Buddhist literature are actually names for Shaiva Nath saints (Gorakshanath and Matsyendranath) who practiced Hatha Yoga.
According to Schumann, a movement called Sahaja-siddhi developed in the 8th century in Bengal. It was dominated by long-haired, wandering yogis called mahasiddhas who openly challenged and ridiculed the Buddhist establishment. The Mahasiddhas pursued siddhis, magical powers such as flight and Extrasensory perception as well as liberation.