There is a story about the dagoba. When Sumatikirti was born, his mother buried the afterbirth. Later, a bodhi tree grew on that spot, and on each of its one hundred thousand leaves a Buddhist statue appeared. Sumatikirti's mother was surprised to see this, so, very happy about getting a son and out of respect for the Buddha, she had a small dagoba built there, which was rebuilt later into Dayin Dagoba.

The inverted-bowl-style dagoba, inlaid with silver and encrusted with gems, is 12.5 meters high. Dozens of layers of hada (a length of white silk used as a greeting gift among Tibetan and Mongolian nationalities) placed around the dagoba show people's respect. Displayed in front of the dagoba is a variety of gold and silver lanterns and ornamental objects, including ivory pieces and vases.

Dayin Dagoba not only is bigger than other Lamaist dagobas built of precious metals, but also enjoys an important position in Lamaism, since it commemorates the founder of the Gelukpa order.