Thatbyinnyu Phaya was built by King Sithu I (1113-1167). Situated just out of the walls of the ancient city, Thatbyinnyu, 61 mt (200 ft) high, is the highest temple in Bagan and it represents the transition from the period Mon and a new architectural style that will be then used for the construction of the Sulamani, Gawdawpalin and Htilominlo.

Thatbyinnyu has never been finished and the imagines of the Jataka have never been installed.

The huge damages of the 1975 earthquake have almost all been repaired in 1979 and the structure has been strengthened in 1990.