Spectacularly set, founded in the 10th century,Lamayuru monastery is about 125 kms. west of Leh. As the legend goes, Lamayuru was a lake. It was blessed by a Lama after which the water of the lake receded up to the mountains leaving place for the monastery to be built. Now mostly in ruins, only the main hall exists today and houses numerous tankhyas. The Yundrung Kabgyad festival is held during summer on the 28th and 29th days of the 2nd Tibetan month. Lamayuru has fascinating caves carved out of the mountainside. Also known as Yung Drung (Swastika) it is sited on a high promonotory overlooking the village and valley.

For sheer spectacle value no other gompa can match Lamayuru.It is also called the Yung Drung or Swastika monastery and its stunning location makes this monastery a must visit on a tour to Ladakh. The monastery has a many Thangka paintings in its main hall. The annual festival of Lamayuru Monastery is held every summer on the 28th and 29th days, of the 2nd month of the Tibetan Buddhist calendar.