Karmae Dharma Chakra School traces its origins to 1974, when His Holiness the 16th Gyalwang Karmapa, Rangjung Rigpe Dorje, established the school as an extension of Rumtek Dharma Chakra Centre. The aim was to provide education for lay children connected to the Karmapa’s entourage who had fled Tibet.

The school gained formal recognition as a Lower Primary School under the Education Department, Government of Sikkim, along with its first grant of Rs 10,000 in 1984.

In 2007, Tsurphu Labrang—the Karmapa’s Office of Administration—relocated the school to the vacant Handicraft Centre at Dharma Chakra Centre. The building underwent extensive renovations and was inaugurated by His Eminence Goshir Gyaltsab Rinpoche on Saga Dawa 2008, and His Holiness the 17th Gyalwang Karmapa, Ogyen Trinley Dorje, who gifted the school with an emblem.

Following the relocation, the school began with classes from LKG to Grade IV and gradually expanded to Class VIII. Throughout its journey, the school was primarily funded and managed by Tsurphu Labrang, with additional support from Karmae Garchen Trust for 2 years (July 2012 to March 2014). Since 2021, Kun Kyong Charitable Trust assumed responsibility for the school project, acting under the guidance of the Karmapa.

In October 2025, the school celebrated its Golden Jubilee, marking fifty years of providing free education to thousands of students- including members of the lay Dharma Chakra Centre, monks, and less-privileged children around Rumtek. The function was graced by His Eminence the Zurmang Gawang Rinpochen as Chief Guest. The celebrations featured multiple events, inter-school debate, elocution contest, cultural programs, sports events with participation of school from Darjeeling, Gangtok, Kalimpong, Martam and Rumtek and open marathon competition.