[1] On his father's side, Ngawang Namgyal descended from the family line of Tsangpa Gyare (1161–1211), the founder of the Drukpa Lineage.
Lhatsewa and supporters of the Chongje king conducted an enthronement ceremony of Pagsam Wangpo as the incarnation of Künkhyen Pema Karpo and Gyalwang Drukpa at Tashi Thongmen monastery.
However, following a misunderstanding Zhabdrung Rinpoche and his party had with an important Karma Kagyu lama, Pawo Tsugla Gyatsho (1568–1630), the Tsang Desi demanded that compensation be paid, and that the sacred religious relics of Ralung—such as the Rangjung Kharsapani—should be surrendered to him so they could be given to the rival Gyalwang Drukpa incarnate, Gyalwa Pagsam Wangpo.
In 1627, the first European visitors to Bhutan—the Portuguese Jesuits Estêvão Cacella and João Cabral—found the Zhabdrung to be a compassionate and intelligent host, of high energy and fond of art and writing.
The Zhabdrung was proud to have the Jesuits as guests of his court, and was reluctant to grant them permission to leave—offering to support their proselytizing efforts with manpower and church-building funds—but they pressed on to Tibet in search of the apostate church said to be isolated in the heart of central Asia (see Nestorian Stele).
[citation needed] The Zhabdrung also established Bhutan's distinctive dual system of government under the Tsa Yig legal code, by which control of the country was shared between a spiritual leader (the Je Khenpo) to preside over the religious institutions, and an administrative leader (the Druk Desi) as head of secular affairs, a policy which exists, in modified form, to this day.