It is believed that the Jambey Lhakang was built on the same day as 108 other lhakhangs (Lhasa I Tibet and kychu Lhakhang in Paro) by the Tibetan king Songsten Gampo to subdue an ogress.

The temple has had restorations and renovations carried out by Guru Rimpoche, sindhu Raja as well as the first king of Bhutan . Inside the main chapel there are three stone steps, which represent the three ages. The first step signifies the age of the Buddha Sakyamuni or the historical Buddha. This step has sunk into the ground, as the age is past. The second step represents the present age (guru Rimpoche is revered as the second Buddha). The highest step represents the new age. It is believed that when a step sinks into the earth the age it represents also passes.