This socio-religious event is celebrated to observe the birthday and the Buddhahood of Tsongkhapa- the Tibetan saint-scholar who founded the Gelukpa school of Tibetan Buddhism during the 14th century. The Gelukpa School later developed as the dominant monastic order in Central Tibet.

The festivities include illumination of all monastic, public and residential buildings throughout Ladakh . Namchaot heralds the beginning of the New Year celebrations, which continue till the festival of Dosmoche.

During this festival, it is customary to prepare various varieties of the traditional dish, Gu-Thuk (Traditional Noodle Soup primarily consisting of nine ingredients) in every home to be served to visiting friends and relatives to mark celebration of the festival.