The dome of the umbrella is held aloft by a vertical handle (just like the mountain upholds the sky), which is identified with the 'axis mundi,' or the central axis upholding the world. The umbrella is carried above an important dignitary or the image of a deity, to indicate that the person or symbol below the umbrella is in fact the center of the universe, and also its spiritual support. Umbrellas seem to be especially important in processional rites, being like mobile temples. Thus, depictions of the Buddha often display an elaborate and large umbrella above his head.

As it is held above the head it naturally symbolizes honor and respect. In Vajrayana Buddhism, this large umbrella (atapatra) was even deified into the thousand-armed, -footed goddess Sitapatra, whose name literally means 'the white umbrella.'

In Tibet, depending on their status, various dignitaries were entitled to different parasols, with religious heads being entitled to a silk one and secular rulers to a parasol with embroidered peacock feathers. Exalted personalities such as the Dalai Lama are entitled to both, and in processions, first a peacock parasol and then a silk one is carried after him.

The Tibetan version of the parasol was adopted from its royal Indian and Chinese prototypes, and fashioned from a wooden, spoked frame with a domed silk cover and hanging silk pendants making up an overhanging skirt.

The dome symbolizes wisdom, and the hanging skirt, compassion. Thus the composite form of the parasol signifies the union of these dual elements.

Octagonal and square parasols are also common, representing the Noble Eightfold Path and the four directional quarters respectively.