Matho has grown around the historic Matho Monastery, which dates back to the early 15th century. The village’s identity is closely tied to the monastery and its Sakya Buddhist heritage. While other villages in the region align with the Gelug tradition, Matho has preserved its distinct spiritual path, with many families historically sending sons to join the monastery.

The village also plays a central role during the Matho Nagrang Festival, held annually at the monastery. Local families gather in large numbers for this event, where monks acting as oracles deliver spiritual messages and predictions for the year ahead—a custom deeply revered by the villagers and neighboring communities.