The lhakhang was founded by the descendant of the great Nyingmapa Lama Dorji Lingpa known as Trulku Tshokten Gyalpo in 1445. According to oral history, the main statue of Guru Pema Jungney is believed to be built by 100,000 daknis in one night according to the prophecy while monks were conducting kanjur. In the morning, the dakins were unable to offer the hat to the statue so Namkhai Nyingpo Rinpoche later offered it as a tribute. It is also believed that the statue had once spoken and all the wishes would be answered. It was a private lhakhang before it was handed over to the government back. The lhakhang is a place of worship for the communities of Jakar. It is considered important for the communities of the vicinity as it is the lhakhang for the children born in Jakar (kay-lha) and a place where they conduct final rites (yi-lha).