Just before he died, the founder of the Drukpa school, Tsangpa Gyare Yeshe Dorje told his nephew and heir, Onre Darma Senge (1177–1237), "A Khampa son from Kham is coming.
Phajo Drugom Zhigpo was born, probably in 1184, at Yangtse Babchu (yang tse 'bab chu), Tashigang in the Do-Kham region of East Tibet the youngest of three sons of the merchant Dabzang (da-bzang), who belonged to a branch of the Gya (rgya) clan, and his wife Achi Palmo Kyid (a chi pel nor kid).
[2][3] Phajo's Tibetan hagiography and Drukpa Kagyu religious histories from Bhutan relate various auspicious and miraculous signs accompanying his conception, gestation, and birth, and record that he was an obstinate and precocious child.
As instructed by Tsangpa Gyare, Onre Darma Sengye took him as his disciple and transmitted the teachings of the Drukpa Kagyu tradition.
"[7] He then went back to his master Onre Darma Sengye and related his experiences and, impressed by his realization, Onre gave him the name Phajo Druggom Zhigpo and bestowed on him the complete empowerments and teachings of Rechungpa's Ear Whispered Transmission of Samvara (bde mchog snyan rgyud).
[8] At the appropriate time, Onre Darma Senye told Phajo about Tsangpa Gyare's prophecy and gave him instructions about his activities in Bhutan.
At the time of Phajo's arrival at Lingzhi, in Bhutan, a cow belonging to a local rich man named Matong Gyi, had given birth to a calf with the head of a donkey and a snake as the tail.
[9] When Phajo went to Wang Sinmo, he met Sonam Paldron, a girl with the signs of a Dakini, at Chagzam Bridge.
In a vision during the meditation, Hayagriva instructed Phajo to continue his line through children to spread the traditions of the Drukpa lineage.
Prior to the arrival of Phajo Druggom, the followers of Nyoe Gyalwa Lhanangpa, a disciple of Kyobpa Jigten Sumgon (1143–1217), the founder of the Drikung Kagyud, known as Lhapa had great influence and controlled a large part of western Bhutan.
This story spread across the country and Lhakpas, the later holders of Lhanangpa's line of teaching (i.e. Dregung Kaguye) was said to have become envious and hostile as the parties sought dominance of the area.
Phajo dismissed the threat and wrote back saying that he had been sent by Onre Darma Sengye in accordance with the prophecy of Tsangpa Gyare, to spread the teachings of the Drukpa lineage.
He firmly established the Drukpa lineage teachings as the main school in western Bhutan and exerted considerable political and spiritual influence in the rest of the country.