The festival was initially founded in memory of the birth, enlightenment and nirvana of Sakyamuni, the founder of Buddhism. It was transformed to a large-scale ceremony to turn prayer wheels later and celebrated on the 15th day of the fourth month in Tibetan calendar.

During the festival, people will turn prayer wheels along three routes: Nangkuo (a circle road around the Sakyamuni Hall in the center of the Jokhang Monastery), Barkhor Street and Linkuo Road. Nangkuo and Barkhor Streets are full of people every day. Linkuo Road is, however, a route for turning prayer wheels only on important festivals. The Saga Dawa Festival is an important traditional festival for Tibetan people living in Lhasa.

After 1959, the festival was gradually transformed to a mass festival held at Dragon King Lake of the Potala Palace, which is mainly for visiting gardens in spring and summer and celebrating harvest.