When Pema Lingpa was descending from Bumthang towards Kheng valley through the passes opposite to present Dangdong village, when he reachd Shedila pass, he saw a beautiful village and was filled with an urge to visit. He said that his heart is beating 'dungdung' out of desire to visit the place. So he went and founded a temple there, which came to be known as Dangdung after his heartbeat.