[1][2] The original palace, now in ruins, was built near the Shey village by Lhachen Palgyigon, the king of Ladakh (then called Maryul), in the 10th century.

The statue is so named since Buddha was the sage (muni) of the Sakya people who resided in the Himalayan foothills and their capital was Kapilvastu.

When the Dogras of Jammu invaded Ladakh in 1842, the Namgyals abandoned the palace and fled to Stok (they made it their permanent residence) on the opposite side of the Indus River.

[8][9][10] Subsequently, when the political dictates necessitated shifting of the capital to Leh, even then the importance of Shey continued since it was a mandatory requirement of the Namgyal kings to father their heir apparent here.

[8][9] Shey Monastery is located in the upper Indus Valley, just 15 kilometres (9.3 mi) east of the modern capital of Ladakh, Leh.

It can be approached by trekking 4 kilometres (2.5 mi) from Thiksey and the path is known as: "for having Ladakh's biggest chorten fields with hundreds of whitewashed shrines of varying sizes scattered across the desert landscape.

[1][8][11][12][13] The giant Buddha as seen in the monastery is on three levels; the lowest level shows his huge feet and "soles pointing upwards" and a mural of Shambunath, the middle floor shows murals of the Buddha in different postures and the upper floor is darkened by the soot of the butter lamps that burn eternally at the altar.

The lower floor has a library with many neatly preserved manuscripts[16] and is decorated with murals of Buddha figures in various mudras (hand gestures).

It is reported that in an isolated village called Chilling the descendants of these craftsmen live and are now known for their craftsmanship in conventional silverware.

[2] Perched on top of the hill, the monastery commands panoramic view of the surroundings of Thikse, Stakna, Matho, Stok and also Leh.

[7] A number of butter lit lamps are placed in the shrine, which burn perpetually over a full year and are then replaced to continue the flame without interruption.

The two day monastic celebration is marked by special rituals performed by the monks in the main monastery, in addition to several other religious rites.

[1][17] During this festival, an oracle reader who visits the monastery on a horse back, conducts a three-day prayer, and then goes into trance.

The body is placed on a sedan chair and carried to the funeral ground in a procession of lamas and the common people of the village.