This Manilakhang is located at Nagthang village, East Sikkim. It was said to have been built in 1918 A.D. by a Tshampa Rinpoche. He was also known as Burma Lama since he came from that country. Legend has it that Tshampa Rinpoche used to meditate at kusochaba, above Nathang village and Yetis frequently roamed about his meditation site.

It is said that Tshampa Rinpoche kept one Yeti as his assistant to collect firewood but one day a quarrel erupted between the Rinpoche and the Yeti due to which the Rinpoche shifted to a new meditation site known as Tshampakangla Shapo. Thereafter Rinpoche built a small Lhakhang which is later developed into Nagthang Mani Lhakhang. He entrusted this Lhakhang to Dromo Geshey Rinpoche before he returned to Burma. Presently it is looked after by the Committee formed in 2005. The Altar contains life sized Cho-Long-Trul-sum Idols and a big Mani wheel is installed in the vestibule. It follows Bhara Kagyupa Sect