The Shakya tradition has its origins with the translator Drogmi, who transferred the lineage of the Indian master Virupa to Khon Konchog Gyalpo. On this occasion, Khon Konchog Gyalpo built the Shakya monastery (meaning grey earth) and founded the Shakya tradition. In 1247, the Mongolian prince Godan Khan conquered Tibet and gave temporal authority over Tibet to Lama Kunga Gyaltsen (better known as Shakya Pandita), who was one of the earliest major figures in this lineage. In 1254 Mongol emperor Kublai Khan invited Chögyal Phagpa for teachings. Also Kublai Khan made Buddhism state religion in Mongolia and made Chogyal Phagpa the first religious and secular leader over Tibet. Shakya masters ruled Tibet more than 100 yrs, before the Gelug took over secular power with the Dalai Lamas. A typical aspect of the Shakya tradition is called Lamdrey (leading to state of Hevajra), a concise presentation of the Buddhist philosophy. The Shakyas were much influenced by the Kadam lineage.

In 1354, the rule over Tibet was given to the monk Changchub Gyaltsen, who was not a Shakya. After this, the tradition declined in importance.

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