There is a beautiful Chinese Temple hiding on a hill next to the road between Thong Sala and Chaloklum fishing village.

Locals say that when the weather is sunny and clear, it is possible to see Koh Tao island from the top of the temple viewpoint.

The temple was built not so long ago, in 1992.  the story tells that the incentive for building this temple was a woman named Miss Malavan who had a dream about the Chinese goddess, Guan Ing. In her dream the goddess told her to build a lighthouse for fishermen to make it easier for them to find the way back home safely in the darkness.

Miss Malavan told about her dream to one of her monk friends, the monk brought her to Koh Phangan. On Koh Phangan she found the place from her dream and showed it to him.

The story about this woman and about her plan spread around the island and many were happy to help and give donations. The generosity of the locals made Miss Malavan and the monk change their minds and instead of a lighthouse to build a Chinese temple in honor of Guan Yin.

The building process took two years.

The wat (temple) consists of three beautiful ornate buildings, each of them is located on a different level. The main building is in the middle and the statue of goddess Guan Yin is inside.

Every day tourist and believers from all around the world come to the temple of Mercy. They meditate and find about their fortune in the Yi Jing, the book of changes.