Khachö Wangpo was recognized as the reincarnation of Khaydrup Dragpa Senge, the first Shamar Rinpoche (1283-1349) by the fourth Karmapa.
He was born in Chema-lung of Namshung, northern Tibet, in the Iron Tiger year. From an early age, he had numerous visions. At the age of seven, he met the Fourth Karmapa Rolpe Dorje and received upasaka and bodhisattva vows. The Karmapa gave him the Authentic Vajrayana Empowerments, Mahamudra transmissions, The Six Dharmas of Naropa, and the ear-whispered lineage transmissions of the Kagyu Lineage. Khachö Wangpo also studied the sutras and the tantras with numerous great masters of Kagyu and Nyingma. The Fourth Karmapa, Rolpe Dorje, granted the ceremonial ruby Red Crown to the Second Shamar Khachö Wangpo. When the Fourth Karmapa passed into parinirvana, Khachö Wangpo continued the lineage activities and enthroned the 5th Karmapa.
Khachö Wangpo was one of the first lineage teachers to record some of the key instructions put into writing. His collected works were recorded as having eight volumes.
At the age of Fifty six, Wood Rooster Year, he passed away into parinirvana with many wondrous signs of realizations.
Among many students, Sokwön Rikpe Raldri became an important disciple who later became the principal teacher of the 6th Karmapa Thongwa Dhönden. He transmitted the full Kagyu lineage to the Fifth Karmapa, Deshin Shekpa.