Karma Kagyu is one of the branches of Kagyu Sect and established by Dusong Qinpa. The name of Dusong Qinpa meant he knows the past, present and future. Dusong Qinpa was born in Kang region and began to learn the teachings of Kadam Sect at the age of 16 years old.
In 1147, he began to accept the disciples in Qamdo Prefecture and Shannan Prefecture, which the Karma Kagyu has gradually been established.
Karma Kagyu is the earliest one to adopt the reincarnation system of Living Buddha, which began with Karma Baxi (1204 - 1283). When he was 11 years old, he began to learn the Buddhism teachings and been called by Kublai Khan (the fifth emperor of the Yuan Dynasty) in 1253. In 1256, he persuaded Mongke Khan to believe in Buddhism. After years, he became the great masters in Tibetan Buddhism.
When he was going to die, he asked one person to find the reincarnation of him who was predicted by him before. And this is the beginning of the reincarnation system of Living Buddha. Karma Baxi has been confirmed as the second Living Buddha while Dusong Qinpa has been subsequently confirmed as the first Living Buddha by generations.
Since Yuan Dynasty, Karma Kagyu has been developed quickly. Karma Kagyu began to contact with the central government closely.
In 1332, the 3rd Living Buddha has been invited in Beijing.
In 1360, the 4th Living Buddha has been invited in Beijing.
After that, the 5th Living Buddha (1386-1415) has been awarded by the Emperor of Ming Dynasty.