The Khumbu valley, where Tengboche is located, came under the influence of Buddhism about 350 years ago. Ancient scriptures of Tibet refer to this valley along with Rowlang and Khanbalung valleys as sacred places. Lama Sangwa Dorje is referred to as the founder of the oldest monastery in Khumbu at Pangboche as well as many other small hermitages. His divine psychic knowledge and clairvoyant vision had prophesied suitability of establishing a monastery at Tengboche based on a foot print on a rock left by him while meditating. However, the actual establishment of the monastery happened only during Ngawang Tenzin Norbu's time; Norbu was considered to be Sangwa Dorje's fifth incarnation. He had established a monastery at Rongbuk in Tibet on the northern face of Mount Everest. He blessed Chatang Chotar, known as Lama Gulu, to found the Tengboche monastery at Tengboche village and as a result it got established at its present location in 1916. It is the first celibate monastery under the Nyingmapa lineage of the Vajrayana Buddhism. However, many older village level monasteries also exist close by.[1]

Three wealthy inhabitants of the local Sherpa community are credited with funding building of the monastery. Among these three, Karma was the most influential and well known as he was a tax collector, and he also enjoyed the patronage of the Rana rulers of Nepal.[2] It is also said that apart from Khumbu Sherpas, Sherung Sherpas have also been involved with building this monastery. Some of the village temples, chortens and smaller religious shrines are predated to 1880, particularly all the large chortens. The Mani wall, made of slabs of stone inscribed with prayers and sacred texts is dated to 1915.[3]

The monastery of Tengboche and other buildings were destroyed during the 1934 earthquake. Subsequently, Lama Gulu who had built it also died. His successor, Umze Gelden, took up the task of rebuilding the monastery, with strong support from Ngawang Tenzin Norbu. The monks and the local community, with support from a skilled carpenter from Lhasa, re-established the monastery. Exclusive murals were painted by Kappa Kalden, a renowned artist.[citation needed] With an influx of tourists to the Khumbu region, particularly for trekking by mountaineers, the monastery has received wide recognition.[1] However, the monastery's precious old scriptures, statues, murals and wood carvings were destroyed in the devastating fire caused by an electrical short circuit on January 19, 1989. The monumental stone credited with Lama Sangwa Dorje's left footprint had also fractured. However, a few trekkers managed to salvage some books and paintings. It has since been completely rebuilt with money donated from all round the world.

 A restored painting in the monastery

Following the destruction of the monastery by fire, its rebuilding was undertaken by the present Nawang Tenzing Jangpo who is considered as the incarnation of the founder Lama Gulu, an important spiritual leader of the Sherpas. He has established an equation with many trekkers and climbers of all denominations who visit the monastery, which has helped him in finding funds for restoration. With due diligence to the set religious practices, the monastery has been substantially rebuilt. Tibetan painter Tarke-la's wall paintings that display the Bodhisattvas or the Buddha decorate the sanctum. In addition, the monks and Sherpa community with help from the Sir Edmund Hillary and Himalayan Trust, the American Himalayan Foundation and many international well-wishers have put in their support in several ways.

Hillary and Tenzing Norgay, an inhabitant of this village, were the first to reach the summit of Mount Everest on the British 1953 expedition and thereafter this monastery has acquired more international interest,[1][4][5] as it is on the route to the base camp of Everest for routes made via the Khumbu icefall and west ridge. Everest expeditioners visit the monastery to light candles and seek the blessings of gods for good health and safe mountaineering.[1][6]

 Everest climbers receive Tengboche monastery blessings from Ngawang Tenzing Jangpo. Ginette Harrison, Sir David Hempleman-Adams, David Callaway, Scott McIvor, Lee Nobmann, Brian Blessed.

John Hunt, the leader of the 1953 expedition and one of the first mountaineers to visit the monastery (most, but not all, previous expeditions approached the mountain from the northern (Tibetan) side), offered the following description of Thengboche in The Ascent of Everest:[7]

Thyangboche must be one of the most beautiful places in the world. The height is well over 12,000 feet. The Monastery buildings stand upon a knoll at the end of a big spur, which is flung out across the direct axis of the Imja river. Surrounded by satellite dwellings, all quaintly constructed and oddly mediaeval in appearance, it provides a grandstand beyond comparison for the finest mountain scenery that I have ever seen, whether in the Himalaya or elsewhere.

 Everest (left), Lhotse (centre) and Ama Dablam (right) from Tengboche

The rebuilt monastery was formally consecrated in 1993 and is considered as the gateway to Mount Everest. The religious room of the Guru Rimpoche in the monastery was fully restored in September 2008. The entrance gate has also been rebuilt with funds provided by the Greater Himalayas Foundation based in Washington, D.C., United States.[8]

The monastery is now said to be home to 60 monks, reflecting its financial prosperity. However, it is also said that fewer and fewer young boys join as monks as they prefer to work in mountaineering or trekking-related activities.[9]

English adventurer Charlie Boorman and Peter Hillary, son of Edmund Hillary visited the village in 2008. The footage was shown in Boorman's series By Any Means.[citation needed]