Damcho Lhakhang is a Buddhist temple, situated on the west side of Phobjikha Valley. The road to this lhakhang goes past Yusa Village. Damcho Lhakhang was founded by Terton Trulku Paljor Gyeltshen, one of the sons of the great omniscient Kunkhen Longchen Rabjam in 14th Century. The small ancient monastery was mainly the seat of the master used as his retreat centre. Trulku Paljor Gyeltshen was a great treasure discovers and he was the true incarnation of Lhasey Muthri Tsenpo, Prince of Tibetan King Thrisong Duetsen. Trulku Paljor Gyaltshen founded many monasteries within Bhutan.

The monastery was taken cared by the local villagers. Later it was offered to His Holiness Gangteng Rinpoche as the local people couldn’t take good care of it. Then in 2014, His Holiness Gangteng Rinpoche appointed His Eminence Jamdrak Trulku Tshewang Tenzin Rinpoche as regent (Lama) of Damcho Lhakhang. Under his appointment as the resident Lama, His Eminence Trulku Rinpoche has brought many developments and the monastery currently houses 17 monks with two teachers. Trulku Rinpoche is taking care of the monastery and the monks starting from food, teachings and shelter free of cost under finding generous sponsors for the support of monks and monastery.

The monastery has got three main statues of Lord Buddha which was built during his time. This is considered to be one of the oldest Lhakhangs in the region and contains beautiful paintings. It is advisable to follow proper clothing etiquette while visiting here.