It is said that the Sixteenth Karmapa's main teacher, the Eleventh Situpa Pema Wangchuk Gyalpo, had established an institute for Buddhist studies at Palpung Monastery in Derge, east Tibet. He also told the Sixteenth Karmapa to establish such an institute. While he had this advice of his teacher in mind, the Karmapa had a vision of the great Pandita Vimalamitra, a scholar who was instrumental in establishing Buddhism in Tibet. During the vision the Pandita told him to establish an institute of Buddhist learning and she would emanate there as teachers and students throughout her thirteen lifetimes. The Karmapa made the decision to establish such an institute, which became a reality with the inauguration of the ‘Karma Sri Nalanda Institute’ in 1982. During its construction the Karmapa had named it after the famous Nalanda University that existed in ancient times.

It is said that the Sixteenth Karmapa's main teacher, the Eleventh Situpa Pema Wangchuk Gyalpo, had established an institute for Buddhist studies at Palpung Monastery in Derge, east Tibet. He also told the Sixteenth Karmapa to establish such an institute. While he had this advice of his teacher in mind, the Karmapa had a vision of the great Pandita Vimalamitra, a scholar who was instrumental in establishing Buddhism in Tibet. During the vision the Pandita told him to establish an institute of Buddhist learning and she would emanate there as teachers and students throughout her thirteen lifetimes. The Karmapa made the decision to establish such an institute, which became a reality with the inauguration of the ‘Karma Sri Nalanda Institute’ in 1982. During its construction the Karmapa had named it after the famous Nalanda University that existed in ancient times.