An account of Pazhi temple was narrated by Tshering from Pazhi village in Laya Gewog (county) in Gasa Dzongkhag (district). It is said that the temple was the residence of Drupthob Kuenga Ralpa from Toe Nga in Tibet. His residence was at Pazhi after coming to Bhutan yet he had to relocate to a lake called Ongmi Nang in order to subdue a devil roaming around that area, taking the lives of many villagers. Later a Dzong was built there and named Yongdzog Lhakhang, which contains relics transferred from Pazhi temple, which was then also called Dzonglue Lhakhang ("leave Dzong", because the Dzong at Pazhi was abandoned). The temple had once been left to ruin after which many misfortunes occurred in the village, as people had never taken care of the temple. Later the villagers realized the cause for their misfortunes and rectified their mistake.