The University of Bristol's Centre for Buddhist Studies has won the grant from the Arts and Humanities Research Council (AHRC).
It will fund a three-year project investigating Buddhist death rituals.
The results of the study will be published and also make up an exhibition designed to be accessible to anyone who is interested in Buddhism.
"We are delighted and excited by this substantial funding award from the AHRC," said Dr Gavin D'Costa, head of the university's department of theology and religious studies.
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