The original name of Bishnupur was Lumlangdong (now Lamangdong). After Kyamba ascended throne of Manipur in 1467 AD he conquered Kyang, which was a Shan kingdom in the Kabaw Valley. Then he assumed the name of Kyamba (meaning "conquerer of Kyang"). There always had been a good relation between Pongs and Meities. During the reign of Kyamba, the relations between himself and the Pong king Khe-Khomba was cordial. Actually it was the diplomatic foreign policy of Kyamba that he was able to have good relations with neighbouring countries.

Kyamba had always wanted to conquer Kyang. After defeating Chaopha Khe Khomba, the king of Pong, the conquered areas were divided between the two kings, they dined together in golden vessels and drank in utensils made of gold. They also exchanged servants and scholars. It is said that an image of Lord Vishnu was gifted by the Pong king along with the fruit pong "hei" ton (guava) and the ponghawai (a kind of dal) to Kyamba.

Kyamba retained the "Vishnu" image at Lumlangdong which also came to be known as Bishnupur i.e. abode of Vishnu. Perhaps, it was during the reign of Kyamba that Vishnu worship started in Manipur. He built a brick temple which has now become a protected historical monument.

During the reign of King Bhagyachandra, there was an interesting story regarding the installation of the statue of Shri Shri Govindajee which was performed in 1780. It is said that one night Lord Krishna appeared in his dream and asked him to find an image of the Lord. Bhaigyachandra answered the command of the Lord and founded the statue of Govindajee. Along with this statue, another six were made from the same jackfruit tree.

The installation ceremony of the statue of Abdeitya enshrined in Bishnupur in the Vishnu temple took place in the year 1793.