Earlier it used to be part of Trashigang (a dungkhag/ sub-district) but Trashiyangtse became a full-fledged dzongkhag in 1993. On the north, it shares its border with the Indian state of Arunachal Pradesh and cross-border trade still exists. The new settlement lies three km from the old dzong, near Chorten Kora.
The road enters from the south through a growing but quiet bazaar and a tall chorten. From here, the road diverges into two: one leads to the headquarters and the Bomdeling wildlife sanctuary while the other climbs to the new dzong. Trashiyangtse is known for its fine cups and bowls made from maple and avocado wood using water-driven and treadle lathes and Desho (traditional Bhutanese paper).