Lhakhang Karpo is believed to have been established in the 7th century by Tibetan King Songtsen Gampo as part of a spiritual mission to subdue demons across the Himalayan region. Alongside its sister temple, Lhakhang Nagpo, it was one of 108 temples built simultaneously across Tibet and Bhutan. The temple was constructed in the shape of the left foot of a demoness who, according to legend, lay sprawled across the region. Building sacred sites on key points of her body was meant to immobilize her and spread Buddhism.

Over the centuries, Lhakhang Karpo has been lovingly maintained and remains an active place of worship for the local community. It houses sacred relics, murals, and statues that showcase Bhutan’s rich spiritual artistry. The temple's recent renovation through a royal initiative preserved its historical design while strengthening its structure. Today, it stands not only as a spiritual center but also as a reminder of Bhutan’s enduring cultural heritage.