The 3rd Tai Situpa (1498-1541) was born in the earth-horse year to a family which descended from the kings of Tibet. He was recognized and enthroned by the 7th Gyalwa Karmapa. From the Karmapa, he received the complete lineage transmissions.

He formally resumed the responsibilities of the lineage of Tai Situpas at Karma Gon monastery. The 7th Karmapa Choedrak Gyatso declared that he and Situ Tashi Paljor were inseparable.

Tai Situpa received golden tablets from the Emperor of China written in silk of five colors, and in five languages, praising his wisdom and abilities.

The 8th Karmapa Mikyo Dorje declared at childbirth that he was the Karmapa and brought himself to the attention of the 3rd Tai Situpa. Without any doubt, Tai Situpa confirmed the child to be the 8th Karmapa. Tai Situpa told the child’s parents to keep good care of him.

The Tai Situpa passed away at age forty-three at Karma Gon. After the Tai Situpa's passing, the 8th Karmapa Mikyo Dorje proved himself to be the true Karmapa at Tsurphu Monastery by demonstrating his power of recollection. The 8th Karmapa was then enthroned by Gyaltsab Rinpoche.