Why is China upset over the visit?
It goes back to 1950 when the Dalai Lama, at the age of 15, assumed powers as the political and spiritual leader of Tibet, an autonomous region of China. He continued negotiations over the future of Tibet with Mao Zedong's communist government until the Chinese troops crushed an attempted uprising in 1959.
Fearing for his life, the Dalai Lama fled to the Tawang district of Arunachal Pradesh, India. He later settled in the city of Dharamshala and formed a Tibetan government in exile.
For Tibetans, he is a beacon of hope and resistance. He is also their spiritual head, belonging to Gelug ("Yellow Hat") School Of Buddhism, and is believed to be the 14th reincarnation of the original Dalai Lama, a spiritual leader who was born in 1351.
But Beijing continues to see him as an anti-China separatist and says his visit to Arunachal Pradesh "escalates disputes over the border area."
The Dalai Lama, in several interviews in the past, has denied seeking independence from China but has called for "greater autonomy and more respect for Tibet's culture, religion and language."
What is the Arunachal Pradesh dispute all about?
China and India have overlapping claims over the Tawang district, the mountain area that hosted the Dalai Lama after he fled Tibet. Beijing considers it to be part of south Tibet and therefore a part of China. India bases its claim, citing the 1913 Simla Treaty, signed by British and Tibetan representatives, which sets Arunachal Pradesh as part of India.
The treaty was rejected by China, who said the then-Tibetan government was not independent and had an illegal agreement with the British. After the 1962 India-China war, China captured 45 kilometres in Arunachal Pradesh but fearing international pressure, they retreated.
How is this visit being perceived in Beijing?
China has warned India of "deep damage" to bilateral ties over the Dalai Lama's visit to Arunachal Pradesh. Beijing has emphasised that New Delhi would now have to make "a choice" in the way it deals with the issue of the Dalai Lama.
Foreign Ministry spokeswoman Hua Chunying told reporters that India's decision to arrange his visit will not benefit New Delhi in any way.
"Arranging his visit to those sensitive and disputed areas not only runs counter to the Indian side's commitment to the issues related to Tibet, but also escalates disputes over the border area," she said.
This will not be the Dalai Lama's first visit to Tawang. He visited Arunachal Pradesh in November 2009, 50 years after he had passed through the town from Tibet to India. China did protest then, but this time their reaction has been amplified.
How is India reacting to China's objections?
India is not ready to buckle under pressure.
It sees China's reaction as an interference in its internal affairs. The Minister of State for Home Kiren Rijiju said, "Arunachal Pradesh is an inseparable part of India and China should not object to his visit and interfere in India's internal affairs."
Arunachal Pradesh is not a disputed territory. People of Arunachal Pradesh are peace loving Indians who desire to have friendly relations. https://t.co/89KIdWA0u2— Kiren Rijiju (@KirenRijiju) April 4, 2017
He also said that the Dalia Lama was a guest in the country and had the right to move around anywhere.
Could this escalate into a diplomatic row?
Possibly, but this is not the first time there have been tensions between India and China.
The two Asian powers have had a hot and cold relationship over he years. While Arunachal Pradesh in the east has been a contested region, the two are also fighting over Aksai Chin in the north of India.
Its funding of a new trade corridor in Pakistan and parts of Pakistan-administered Kashmir has raised alarm in India.
China is also investing in Sri Lanka and Bangladesh, making India feel strategically cornered.