Dorje Shugden’s practice initially began in the Sakya school when the "spirit" of Tulku Drakpa Gyeltsen first travelled there after failing to enter Tashi Lhumpo to meet his Guru.

One of Dorje Shugden’s previous incarnations was as Sakya Pandita. As such the Sakya patriarch at that time, Dagchen Dorje Chang Sonam Rinchen accepted him and officially enthroned him as a Dharma Protector. Then, Kunkhyen Ngawang Kunga Lodroe composed a praise that became the start of his practice in the Sakya School.

Meanwhile, the Fifth Dalai Lama and many other high Lamas tried to destroy him with various wrathful rituals but all their attempts failed. This appeared to be a deliberate attempt on the part of the Dalai Lama to publicly prove the indestructible nature of Dorje Shugden.

This statue was made by the 5th Dalai Lama himself.

It is still venerated daily in Phelgyeling Monastery, Nepal.

Eventually, realizing that Dorje Shugden had, in fact, arisen as a Protector and not as a spirit, the Fifth Dalai Lama composed a praise of Dorje Shugden and even crafted a statue of him with his very own hands. He entrusted this statue and practice to Phelgyeling Monastery, which then installed Dorje Shugden as its main Protector. Elders of the monastery today say that the practice became so widespread that even Nyingmapas of their area in Tibet practiced Dorje Shugden.

The Great Fifth Dalai Lama also built the first tsen khang, Protector chapel, of Dorje Shugden in Lhasa. This temple still stands in Lhasa today and is a popular pilgrimage site for devotees of Dorje Shugden from all over the world. In its earlier days, the chapel was placed under the care of Riwo Choling, a Gelug monastery – this became the first link for Dorje Shugden’s practice to enter the Gelug tradition.