Legend has it that King of Gorkha possessed divine powers known only to her devotee Lakhan Thapa. One day, the King found his Queen as Goddess. Following the revelation, he mentioned it to his Queen and he suddenly died. He was cremated and his Queen committed sati on his funeral pyre, as per the custom. She consoled her lamenting devotee Lakhan saying she would reappear near his home. Six months later, a farmer ploughing his field hit a stone, cleaved it and blood and milk flowed which ceased when Lakhan worshipped it with his tantric knowledge.

The site became foundation of the present shrine. The present pujari (priest) is the 17th generation descendent of Lakhan Thapa. Unlike other temples, priest of this temple belongs to Magar caste, not Brahmin. People believe Manakamana Devi fulfills the wishes of her devotees, thus called the wish fulfilling deity. The reward on reaching the shrine is both spiritual and physical exhilaration. Spectacular views include deep valleys, terraced fields and the Manaslu-Himalchuli and Annapurna ranges. In the past, the only access to the region was by arduous climb of over five hours but one can now visit the shrine in comfort by Manakamana cable car.