At his birth in Nagam Chu province, in eastern Tibet, the eighth Karmapa, Mikyo Dorje (1507 – 1554), sat up and declared "I am the Karmapa! I am the Karmapa!" His father sought out Situ Tashi Namgyal, to request advice about his remarkable son. Mikyo Dorje was told the child was probably the Karmapa reincarnation, and instructed to care for and raise him with that in mind. Almost simultaneously, a family named Amdo, from Kongpo in central Tibet, brought forward their son's claim to be the Karmapa.

Gyaltsap Tashi Namgyal was asked to watch over this second child. Meanwhile, the first child had been taken to Lho Rong, in Riwo Che province, where a number of the previous Karmapa's disciples had gathered. They were convinced that this was the reincarnation of their teacher. And so began a trying period, as the two factions each persisted in supporting their particular candidate. Finally, Gyaltsap arranged for the two children to meet and to be tested. Following tradition, each was asked to select the possessions of the previous Karmapa from a random assortment of objects.

Mikyo Dorje proved able to choose the correct objects – his rival was not. Thus it was Mikyo Dorje who was proclaimed Karmapa, and immediately announced that his rival was, in fact, the reincarnation of Zurmang Chungtsang from Zurmang Monastery in the east of Tibet.

Mikyo Dorje took the full Kagyu teachings from Tashi Paljor, and rounded off his studies with a range of accomplished masters. Mikyo Dorje went on to write many treatises, and found several monastic colleges. Mikyo Dorje selected as lineage holder the fifth Shamarpa, Konchog Yenlag, whom he had identified, and to whom he had passed on the Kagyu transmission, stating that the Karmapa and Shamarpa incarnations are inseparable, and of the same mind – stream.

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