[2] A later monastery complex was built in 1692 by 4th Druk Desi Tenzin Rabgey around the Taktsang Senge Samdup cave, where Guru Padmasambhava meditated and practiced with students including Yeshe Tsogyal before departing the kingdom of Tibet in the early 9th century.

[2][3] Padmasambhava is credited with introducing Vajrayana Buddhism to Bhutan, which was then part of Tibet, and is the tutelary deity of the country.

[5][6][7] A popular festival, known as the Tsechu, held in honor of Padmasambhava, is celebrated in the Paro valley sometime during March or April.

[8] According to the Namthar of the Lhakhang, it is believed that Padmasambhava (Guru Rinpoche) flew to this location from Singye Dzong on the back of a tigress.

[9][10] Guru Rinpoche disguised himself as the wrathful Dorje Drolo, meditated in a cliffside cave and then subjugated the malicious spirits.

[10] An alternative legend holds that a former wife of an emperor willingly became a disciple of Guru Rinpoche (Padmasambahva) in Tibet.

The corroborative proofs mooted are: that Tenzin Rabgye was seen (by his friends) concurrently inside and outside his cave; even a small quantity of food was adequate to feed all visitors; no one was injured during worship (in spite of the approach track to the monastery being dangerous and slippery); and the people of the Paro valley saw in the sky various animal forms and religious symbols including a shower of flowers that appeared and also vanished in the air without touching the earth.

[9] After he died later in Nepal, his body was said to have been miraculously returned to the monastery by the grace of the deity Dorje Legpa; it is now said to be sealed in a chorten in a room to the left at the top of the entrance stairway.

[12] Therefore, Paro Taktsang Singye Samdrup Dzong is one of the twelve meditation places of Guru Rinpoche entrusted to Phajo.

[10] The first sanctuary to be built in the area dates to the 14th century when Sonam Gyeltshen, a Nyingmapa lama of the Kathogpa branch came from Tibet.

[9] In the 17th century the well-known Tertön Pema Lingpa of Bumthang, who founded many monasteries in various parts of Bhutan, was also instrumental in creating religious and secular dance forms from his conception of the 'Zangdok Pelri' (the Copper Colored mountain), which was the abode of the Guru Padmasambahva (which is the same place as the Paro Taktsang or Tiger's nest).

[5][11][14][15] The wish of Zhabdrung to build a temple here, however, was fulfilled during the 4th Druk Desi Tenzin Rabgye (1638–96), the first, and only successor of Shabdrung Ngawang Namgyel (Zhabs-drung Ngag-dbang rNam-rgyal), "a distant cousin from a collateral line descending from the 15th century ‘crazy saint’ Drukpa Kunley".

[5] At that time the only temples reported to be in existence, at higher elevations, were the Zangdo Pelri (Zongs mdog dPalri) and Ugyen Tsemo (Urgyan rTse-mo).

[5] On April 19, 1998,[16] a fire broke out in the main building of the monastery complex, which contained valuable paintings, artifacts and statues.

A mule track leading to it passes through pine forest that is colorfully festooned with moss and prayer flags.

The water that is touched by the wheel is said to become blessed and carries its purifying power into all life forms in the oceans and lakes that it feeds into.

[25] The monastery buildings consist of four main temples and residential shelters ideally designed by adapting to the rock (granite) ledges, the caves and the rocky terrain.

It is also said that the monks who practice Vajrayana Buddhism (the formal State Religion of Bhutan) at this cave monastery live here for three years and seldom go down to the Paro valley.

The “Copper-Coloured Mountain Paradise of Padmasambahva” (Zangdopari) is vividly displayed in a heart shape on every thangkha and also painted on the walls of the monastery as a constant reminder of the legend.

The paintings also depict Klu (Naga) demigods with a human head and the body of a serpent, which are said to reside in lakes (said to denote that they are guarding the hidden treasures).

The ambience is shown in the form of wishing trees, fountains of the water of life, rain bows in five colors with cloud formations and light emanating from lotus flowers.

After the revision of visa policy of Bhutan in 2023, it was decided that an entrance fee of 1,000 Nu will be levied for all adult visitors to Taktshang from March 2023.