The Buddha temple (Gompa) is assumed to have come into existence for the duration of the eighth century when
Padmasambhava Buddha the second and the originator of Lamaism or the
Tantrik cult of Buddhism (Vajrayan) emanated. It is believed that Padmasambhava selected Mandi for his spiritual exercise.
He came amazingly to this kingdom, particularly to visit the king's renowned daughter Mandharva, to preach her the teachings of Buddhism. She was a religious woman. But the heretic king burnt him alive, on the spot where the present lake,
Rewalsar, is existing.
Padmasambhava changed the flame and converted it into water and outcame a lake, and Padmasambhava sat upon a Lotus stalk in the midst of the lake. The king then conceded his, unawareness and paid homage to
Padmasambhava. The King's daughter Mandharva, who had been put in a deep trench full of thorns, was taken out and allowed to follow the Preacher's teachings.