Mahavairocana Retreat Center was founded by the first Palpung Khyentse Rinpoch in 1937. This center is for advanced studies and practices for those monks who had completed their 3-year retreat in Higher or Lower Retreat Center to practice Kriya Tantra, Yidam Vairocana, Aksobhya-Vajrasattva, Vajrasattva, Amitabha, Uchusmarn and also to practice fire and smoke offering, Guru Yoga of Karmapa etc., Nirvana text, Bhaisaijya text, Vajrakilaya, White Tara Yoga, chanting for one year.
This retreat was rebuild in 1998 and first retreat group was started on 1999. Ven, lama Karma Namgyal is now the master of Mahavairocana Retreat Center. He is also the main instructor of all retreat centers since their re-openings in Palpung Monastery. He contributes a lot to keep lasting lineage dharmas of all retreat centers of Palpung Monastery, and his position now in Palpung Monastery is like Kalu Rinpoche at that time when Kalu Rinpoche was in Palpung monastery. Current retreat master of Mahavairocana retreat center is Lama Karma Yeshe who is appointed by Ven, lama Karma Namgyal.
Historical relics that are conserved in Mahavairocana Retreat Center: statues of all kinds of Buddha, Bodhisattva, Yidam, and Derge Edition Kangyur and literature collections of masters of Kagyu School.
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