In the Indian Kingdom of Mutik Sher, the evil King Longpe Choje was extremely jealous of the skilled and intelligent chief merchant, Norsang. He feels so threatened by Norsang, that he plots to do away with him by sending him on an impossible journey across the "Endless Ocean" to procure the "Wish Fulfilling Gem". When, of course, Norsang does not return, his beautiful wife Lharing Dhamse is overcame with grief. The Great Guru, Padma Sambhava notices her anguish and feels tremendous compassion for her. He projects a ray of light into Lharing Dhamse’s body and nine months later, she gives birth to a son, Pema Woebar, the "Lotus of Great Light".
Pema Woebar is no ordinary boy. From a very early age he demonstrates considerable dedication to the Buddhist doctrine. His special nature cannot possibly remain hidden, and therefore the evil King soon finds out about him. Concerned that Pema Woebar may one day avenge his father, the King sends the young boy on three seemingly impossible missions. Pema Wobar’s mother is horrified at the thought of losing another loved-one in this manner, so she asks the goddesses for help. The goddesses tell her of the hardships he will have to face, and advise Lharing Dhamse to teach her son a protective magic mantra which they disclose to her.
With the help of the mantra, Pema Woebar succeeds in fulfilling each of the King’s outrageous commands. Desperate to get rid of this superhuman child, the King orders two executioners to burn Pema Woebar to death. As Pema stands upon the burning pile of wood, he recites the mantra and is protected from the flames. The executioners are terrified. The king would surely punish them severely and probably even kill them if they do not carry out his orders. Pema Woebar, acting upon compassion and in order to save their lives allows himself to burn and therefore, he dies.
The ashes of Pema Woebar are gathered up by some fairies and dropped into the sea. On the spot where they drop the bag into the sea, a great lotus plant grows. In the heart of the flower is a baby, the reincarnation of Pema Woebar. The baby is the great Guru Padma-Sambhava. The fairies then dispose of the King and his evil helper through a clever trick.
The Guru is crowned in a new palace and many people come from far and wide to pay tribute to him. The people live happily and prosper under the wise and compassionate leader.