The word 'Bugayumi' is a Kiratian dialect so it is proof that the settlement had come into existence since the Kirati period before the Christian Era.

Bungamati is the hometown of the deity Machhindranath, regarded as the patron of the valley and his large shikhara-style temple in the center of the village square is his home for six months of the year; he spends the rest of his time in Patan.

The process of moving him back and forth between Patan and Bungamati is one of the most important annual festivals in the valley.

The view is spectacular from the temple, which is surrounded by trees and large bamboo and overlooks the Bagmati valley to the foothills.

Bungadeya has many important mythological, historical and contemporary ritual associations with water.

Machhindranath is also known by the name “Karunamaya” meaning an embodiment of love and kindness like a mother figure.

The copperplate and stone tablets of the Malla period mentioned in the context of repair and restoration have been found.

In Tibetan Nyingmapa, Bajrayani Buddhism also shows this Hanyagriva Bhairav as a Bodhisattva.

Karyabinayak Temple was built on the fourth Thursday of the month of Chait in Nepal Samvat 781 (1661 AD) under the leadership of leader Purna Singh of Bungamati.

Inside this temple, worship is done on a naturally formed stone in the shape of Ganesha.

On the day of Paha Chahre (during the Ghoda Jatra) there is a Karyabinayak deity procession in Bungamati.The people of Bungamati call this place Gale, which means forest.

The temple is built in a small size in the tiered style, which was renovated during the reign of King Mahendra.

After the April 2015 Nepal earthquake, the city saw a massive destruction as most of its houses were made up of traditional mud and brick elements.