Thadrak Goemba was founded by Lama Sangay Jamtsho in 1669. It is located on a hilltop above Tandin Nye. It was prophesied by Guru Rinpoche that Sangay Jamtsho will go to a place where he will find a mountain in the shape of a Phurba (ritual dagger) and build a monastery there.
When he came to Bhutan he felt the present site fit with the description he was given in his dreams. As a result, Lama Sangay Jamtsho built a small temple on top of the mountain. He also installed the Kilkhor of Phurba (Mandala of ritual daggers) as the principal relic.