The article is an analysis of an institution of tulku in Tibetan Buddhism examples by tradition of the incarnations of the Dalai Lamas. The purpose of the paper is to show the discussed topic in possible broadest context with its historical, political and cultural framework. The genesis the institution of tulku in Tibet will be described, as well as its mechanisms of actions. The way of choosing a heir within tradition will be analyzed along with its theoretical justification. Then, in the next part of the paper, the short history of the lineage of the Dalai Lamas in Gelug school of Tibetan Buddhism will be presented including all possible relevant factors on this topic. As a conclusion, the author of the paper will try to answer a question about the reasons of such tremendous impact of the institution of the tulku exerted on the Tibetan society.