The temple was built in 1782 by Lama Dorjey Rinzing and is perched atop the Observatory Hill and is an amalgamation of Hindu and Buddhist religions.
[1][2][3][4] Mahakal Temple stands as a historical edifice on the spot where a Buddhist Monastery named 'Dorje-Ling' once stood, which was built by Lama Dorjey Rinzing in 1765.
It was after the invasion of the Gurkha Army around 1788 that the monastery was desecrated and destroyed by the invading troops and in course of time the sacred place overwhelmingly began to represent the Hindu symbolisms of the majority Nepali community.
There are idols of Buddha alongside the Lingams where both a Hindu priest and a Buddhist monk perform religious rituals and offer prayers simultaneously.
Within the temple complex is a white 'chorten' (Tibetan memorial shrine) where lies the relics of Dorjey Rinzing Lama the original builder of the site.