Located beyond Kuje Lhakhang, Thangbi Lhakhang is an easy 2 hour walk through the beautiful upper Chhoekhor Valley from where the motorable road ends. It was founded in 1470 by the 4th Shamar Rinpoche (the red hat Karmapa), Chokki Drakpa, an important lama of the Karma Kagyudpa sect. Pemalingpa later took over the monastery under the Nyingmapa sect. The iron curtain at the entrance is said to have been cast by the saint himself.

Thangbi Mani festival is one of the most popular festivals held in Chhoekhor Gewog in Bumthang. The festival is organized by the people of three villages in Bumthang, Thangbi, Goling and Kharsath. The festival is an ancient tradition and dates back to the 13th century. The highlight of the festival is the fire blessing (Mewang) ceremony, performed in an open ground. The lay monks perform purification rituals while people jump over flames to purify themselves. Several mask dances are also performed. It is believed that the festival would bring peace and prosperity and ensure better harvest for the entire community.