The temple was constructed by King Suzhuang, the local governor and a devout believer of Daoism, in emperor Hui's second Jianwen year in the Ming dynasty, at the location of a temple built in the Song dynasty . After its completion, he named it 'Temple of Golden Heaven', and invited Sun Biyun, the reverend Daoist of the Jade Emptiness Temple on Mt. Wudang. It is said that Zhang Sanfeng himself paid a visit to the temple, discussing the Book of Changes3 with Sun Biyun.

In the 59th Qianlong year, the temple was reconstructed thanks to the governor of Gansu, who donated his salary. More renovations were done in the 11th Jiaqing year of the Qing dynasty when the statues in the temple were covered with gold foil. In the 3rd Daoguan year of the Qing dynasty, La Yancheng, governor of Shanxi and Gansu, had an ancestral temple constructed in memory of his late father. In 1928, policemen and soldiers of the Republican government were stationed in the halls and houses in the temple. Consequently, the religious activities were seriously interrupted, and the statues and other relics terribly damaged.