Chador lhakhang was initially built in the 12th century but the present lhakhang was reconstructed in 1986 by lam Pema Wangchen who was famously known as lam Nagpo, the disciple of Dudjom Rinpoche. It is considered to be one of the important and sacred lhakhang in eastern Bhutan due to the presence of a fascinating thumb-size replica of Chador (Varjapani). The lhakhang was earlier known as Goemba Ringbu however, it was renamed Chador lhakhang after the sacred treasure of Chana Dorji. Later, Dilgo Khyentse Rinpoche gave a new name Sangdag Gaypailing lhakhang. The sacred statue of Chana Dorji was a terma of tertoen Pema Lingpa, he was the great treasure discoverer of the 15th century. It is believed that two statues of Chador Yabyum had been concealed as a hidden treasure in the Yutsho at Khar in Pemagatshel Dzongkhag and were discovered by tertoen Pema Lingpa. Later, they were presented to the chieftain of Khardung (Dungsam Khar) and later bought to Bartsham where the lhakhang stands today.