The city of Yushu, historically known as Gyegu (or Jiegu), boasts a rich past shaped by its unique position at the crossroads of civilisations. Its history is inextricably linked with nomadic culture, Buddhist monasteries, and the bustling caravan routes that have traversed the Tibetan Plateau for centuries. Today's city grew from an ancient trading settlement that served as a vital regional hub.
The historical core of the modern city was the Kyegu Gompa (Kyekung Gompa) monastery, belonging to the Sakya school of Tibetan Buddhism. It was around this spiritual centre that the settlement gradually began to form and expand, eventually evolving into a lively trade and cultural node. Some sources also link the founding of monasteries in this area to the activities of prominent religious figures, such as the First Karmapa in the 12th century.
Yushu owes its growth and significance primarily to its strategic location. The city was situated at the intersection of the most important ancient trade routes: one route connected Sichuan province with the Amdo region, whilst another led from Xining (the capital of Qinghai province) to Lhasa. This made Gyegu a key transit point for caravans transporting various goods, especially tea, which was supplied in massive quantities from Sichuan to various regions of Tibet in the 19th century. Its location in the Batang River valley, a tributary of the upper reaches of the great Yangtze, also contributed to the settlement's development.
From the very beginning of its existence, Yushu was not only a commercial hub but also a significant cultural centre with a distinct Tibetan identity. The city's economy was long focused on trade, and its population consisted predominantly of Tibetans, which defined the city's cultural character. In addition to Kyegu Gompa, other influential monasteries, such as Thrangu and Domkar, were located in the vicinity, highlighting the deep spiritual significance of this area throughout its history.