Shugdra is one of the great four cliffs of Bumthang where Guru Rinpoche visited and mediated to gain the power to subdue the local deity Sheling Karpo. It was initially blessed by Guru in the 8th century but however, the lhakhang was built by Garpa Nado in the late 19th century. It is believed to be centrally located in a strategic location where the flowing rivers from three valleys meet. The legend says the cliff on which the lhakhang is nestled looks like a flying jachung (garuda). The main nangten (relic) is the statue of Guru Rinpoche which was initially discovered by the founder. As per the oral narration by Nalem (2021), it is said that while the founder was herding the cows, he encountered a little boy who asked him to go to a cave, showed him the small statue of Guru, and disappeared. He was astonished by the blessing and then decided to clear the forest around the cave. Later, he built a small lhakhang adjoining with the originally formed cave where Guru once meditated. The surrounding the lhakhang have many sacred holy sites such as the meditation cave of Guru, Khandro Yeshi Tsogyal, drupchu (holy water), and many more.