Deshin Shegpa, the fifth Karmapa, (1384-1415), was born in the Nyang Dam region of Soutern Tibet, immediately sitting up, wiping his face, and declaring "I am the Karmapa - Om Mani Peme Hung Shri". inchen Pal, the secretary to the third Karmapa, who identified and became secretary to the fourth Karmapa, also located this child, and in due course served him as secretary for the third time.

Deshin Shegpa was brought to Tsawa Phu in Kongpo where a significant number of the fourth Karmapa's disciples were living. Shamar Kacho Wangpo immediately recognised the child as the incarnation of Rolpe Dorje, and presented him with the Black Crown and other possessions of the fourth Karmapa. He went on to give the Karmapa the full cycle of Kagyu teachings.

This Karmapa was a famous traveller, teaching throughout Tibet, Mongolia and China, where he was invited by the Emperor, Tai Ming Chen, who eagerly became a student of Deshin Shegpa. Returning to Tibet after some years, Karmapa built many shrines and stupas, and continued to teach and give empowerments. He found the next Shamar reincarnation, Chopal Yeshe, arranged his ordination, and gave him the Kagyu transmission. The next lineage holder, however, was his student Ratnabhadra.