During the period of the 9th ‘Rabjung’, a Tibetan reincarnate, Trulku Gyeltshen Pel, disciple of Gyalwa Gyeltshenpa, began his journey from Baeyul (in Tibet) to Bhutan to follow the prophesy of Lord Buddha. He visited various holy places in the country and finally, having reached Paro, saw a hill in the shape of a human heart (Ri Drangje) and decided to reside there on the top of the hill. In 1510, he built the monastery of Drangoe Goemba and established a small Buddhist school and practised ‘Bara Kajyud’ teachings.He also built many other monasteries, such as Dzongdra Kha Lhakhang, Goenyul Nangsel Goenpa, etc. to spread the teachings of ‘Bara Kajyudpa’.
Later, after the death of Gyeltshen Pel, Trulku Namkha Gyeltshen took over the Lhakhang and continued the reign down the generations by his reincarnations. The monastery was later seized by Lam Kha Nga when they came into power. Soon after, a fable ran that a woman spread the rumours of the decline of the doctrine. On hearing this rumour, Pelden Drukpa Rimpoche (Zhabdrung Ngawang Namgyel) paid a visit to Bhutan and restored the monastery from Lam Kha Nga and commanded the second Drubchen, Jimpa Gyeltshen to take charge of it. After the restoration, the Takstang Lamas were also recruited from this monastic school.
The monastery is fully restored and stands on the peak of the hill above Nemjo valley. The chamber of the first Taktshang Lama is still secure inside the monastery.