After becoming enlightened, two merchants whom the Buddha met, named Tapussa and Bhallika became the first lay disciples. They are given some hairs from the Buddha's head, which are believed to now be enshrined in the Shwe Dagon Temple in Rangoon, Burma. The Buddha intended to visit Asita, and his former teachers, Alara Kalama and Uddaka Ramaputta to explain his findings, but they had already died.

The Buddha thus journeyed to Deer Park near Varanasi (Benares) in northern India; he set in motion the Wheel of Dharma by delivering his first sermon to the group of five companions with whom he had previously sought enlightenment. They, together with the Buddha, formed the first sangha, the company of Buddhist monks, and hence, the first formation of Triple Gem (Buddha, Dharma and Sangha) was completed, with Kaundinya becoming the first stream-enterer. All five soon become arahants, and with the conversion of Yasa and fifty four of his friends, the number of arahants swelled to 60 within the first two months. The conversion of the three Kassapa brothers and their 200, 300 and 500 disciples swelled the sangha over 1000, and they were dispatched to explain the dharma to the populace.