The town of Bunga or Bungamati lies about nine kilometres to the south of Kathmandu which is an exclusively Newar farming community. The inscriptions discovered here suggest the settlement already existed in the 7th century AD. 

Bungamati is famous for the temple of Bunga-dyo. Buddhists worship it as a two-armed figure of Padmapani Lokesvara (a form of Avalokitesvara, the most important deity in the Mahayana Buddhism) whereas Hindus worship it as the Rato Machhendranath.

The general public also venerate the deity as Karunamaya ‘the God of Compassion’ -the supplier of the annual rainfall ensuring the prosperity of the valley.

The deity of Bunga-dyo has two temples of residence; the idol of Bunga-dyo resides in a temple in Patan for six months and is brought back to Bungamati after the Rato Machhendranath Chariot festival is over.