Perched at the eastern slope of the Yaowangshan Mountain in Lhasa, Pharla Lhufo was carved during Songtsan Gambo's reign in the 7th century, according to a Tibetan history book. Legend has it that Songtsan Gambo's concubine Moya Yuyungsa had a statue of a heavenly god carved in a grotto at the Pharla Lhufo Mountain. Artists involved with the work were paid in salt, the amount of salt paid equivalent to the amount of stone dust created by the carving. When the stone statue was created, she had a stone corridor created for her to take ritual walks in the grotto. Though the grotto monastery has been in existence for more than 1,000 years, it is still well preserved for Buddhist activities.

The grotto is in the shape of a rectangle and covers an area of 27 square meters. It has a central pillar at the entrance to support the top. Between the central pillar and the stone wall is the corridor for taking ritual walks. The corridor is flanked by carved statues of deities and legendary heroes, including Tubo King Songtsan Gambo, Tang Dynasty Princess Wencheng, Nepalese Princess Bhributi, and Tubo Ministers Tome Sangbozha and Gar Tongtsan. Flickering butter lamps in the cave add mystery to the environment.