Pema Tönyö Nyinje was born in 1954 in the village of Palmey, Palyul, Derge, Kham into a farming family named Liyultsang.
At the age of six he left Tibet for Bhutan, where King Jigme Dorji Wangchuck had been a disciple of the 11th Tai Situ.
Chögyam Trungpa wrote in his book Born in Tibet: "Tai Situ Rinpoche, who was second in importance in the Karma Kagyu school, had died some years before and no reincarnation had been found.
In 1975, at the age of 22, he assumed his traditional responsibilities by founding Palpung Sherabling Monastery,[5] at Baijnath, Himachal Pradesh, North India as his main seat in exile.
Its 25 years' jubilee was celebrated in a two-day Peace Conclave that was held in Palpung Sherabling Monastery[6] with guests and representatives from different World Religions.