Located at a distance of about 100 kms from the state capital, Ratnagiri was once an important centre of Mahayana form of Buddhism, situated in the Brahmani and Birupa river valley in the district of Jajpur. The small hill near the village of the same name has rich Buddhist antiquities.

However, during the 8th and 9th century A.D, it became a great centre of Tantrik Buddhism or Vajrayana art and philosophy. Pag Sam Jon Zang, a Tibetan source, indicates that the institution at Ratnagiri played a significant role in the emergence of Kalachakratantra during the 10th century A.D.

The place is located on a small hill top over-looking the vast plains dotted with green hills in the distance. A large-scale excavation has unearthed two large monasteries, one of them identified as Sri Ratnagiri Mahavihara Aryabhikshu Sangha that holds beautiful doorways, a big stupa, Buddhist shrines, sculptures and a massive idol of lord Buddha.

Apart from this one can also find sculptures based on Hindu mythology. Ratnagiri boasts of a splending Hindu temple dedicated to Lord Krishna.

Ratnagiri is also famous for its Archaeological museum.