According to the caretaker Naykor (2021), the lhakhang was initially constructed as a goenpa by Sherab Jungney in 1907. It is a sacred place blessed by the third reincarnation of Zhabdrung Ngawang Namgyel known as Jigme Drakpa in the 19th century. Later in 1917, the lhakhang was reconstructed after the order was passed by the 1st king Gongsa Ugyen Wangchuck while returning from Dungsam Dewathang under Samdrup Jongkhar dzongkhang. The manpower such as carpenters, stone masons, and sculptors were all provided by the king to reconstruct it into a larger structure and was named Mendrelcholing lhakhang. However, it was famously called “Dungkhar lhakhang” for the fact the lhakhang was built on the topography which is viewed as dungkhar (conch shell). The carpenters were sent from Wangdicholing palace, Bumthang. Shingzo Thinley Dorji, tshipzo Phurpa Gyetshen, lhadrip Tshewang Dorji, and jimzo Nidup Dorji were the experts sent to construct the lhakhang. Later, Damchoe Dorji who was the follower of Nidup Dorji built the standing statues which can be seen even today. Extended the structure in 2001 to make space for mani-dungkhor. The carpenters were sent from Wangduechoeling palace from Bumthang for the reconstruction work.