The municipality was formed merging the then two Village Development Committees of Phungling and Dokhu in May 2014.

[9] The main inhabitants in Phungling are Limbu, Chhetri, Tamang, Brahman, Sherpa, Bhote, Newar, and Gurung.

It is connected to rest of the country through the Mechi Highway, a 268-km road which begins in Kechana of Jhapa district and ends in Taplejung.

This little-known region attracts tourists seeking spiritual fulfillment and blessings from the powerful Pathibhara Devi.

Phungling has a subtropical highland climate (Cwb) with cool, dry winters and warm, rainy summers.