There is a little history behind this temple. in 1765, A Buddhist Monastery named ‘Dorje-Ling’ once stood which was built by Lama Dorjey Rinzing and Mahakal Temple stands as a historical edifice on the spot.
It is believed that the spot was holy spot of the aboriginal Lepcha folks, and after that a monastery was constructed on the spot and Lepchas and Bhutias, both worshipped that monastery.
Around 1788, It was after the invasion of the Gurkha Army, the monastery was desecrated and destroyed by the invading troops, because of it began to represent the Hindu symbolisms of the majority Nepali community. In 1782, Legend has it that three Shiva-Lingas representing Brahma, Vishnu and Maheshwar (Shiva), in 1815 during the Gorkha invasion, The monastery itself was plundered and destroyed. After that it was shifted to Bhutia Busty about a mile away and was called the Bhutia Busty Monastir. The temple is a religious shrine of the area.