According to oral history, the lhakhang is said to be first sanctified and founded by Ngogten Choeku Dorje in the 11th century who was the disciple of Pha Marpa. Later, Karma Thubwang (Jigme Kundrel) reconstructed the lhakhang in the 17th century. It was named as ‘Wangthang’ after the founder which is associated with the story of a little boy named Karma Thubwang. The story of his mother and himself who went for cattle herding at the present location where lhakhang stands today correlates the name of the lhakhang. The little boy is said to have dug the soil and when asked why he is doing so. Then he replied that after the completion of his studies, he would establish a goenpa named Wangthang (“Wang” meaning hole in Sharchop native language). However, different names were given like Dechen Duling and Dechencholing in the past but now it is popularly known as Wangthang.