Khamriin khiid monastery was established in the 1820's by the order of Mongolian educator and literary figure Danzanravjaa. The Monastery was the biggest center of the Buddhist "red sect".

Also, this monastery is the place where Danzanravjaa put on his famous show “Saran Khukhuu” in 1830. Danzanravjaa used to fight against the rigid class and gender distinctions of his day. He devoted great efforts to the cause of public education, which he promoted at Khamriin khiid monastery through the establishment of an inclusive public school, theatre, museum, and library.

The "Namtar duulakh datsan" (story-singing college), established at Khamriin khiid monastery in the 1830s, is recognized as being Mongolian first professional theatre. The nearby "Khuukhdiin datsan" (children's college) offered basic and vocation, artistic training for local children, who often went on to become singers and dancers, painters, sculptors, and other artists at the Monastery or in its theatre company.

The monastery was a perfectly harmonious location, having a river with many fine trees along its south part and rocky mountains with dozens of caves along its north; and the place was filled with the noise of hundreds of people playing the famous Saran Khokhoo drama”.