The history of Ubud Gunung Lebah Temple is closely related to the origin of the name Desa Ubud. This temple was established which can not be separated from the arrival of the first rsi to Bali in the 8th century, namely Rsi Markandhya, based on the Lontar Markandhya Purana. In addition to building the Temple of Mount Lebah Ubud, he also helped build the largest temple in Bali, namely the Great Temple of Besakih in Karangasem, the Great Temple of Mount Raung in Taro Village and Pucak Payogan Temple in the Village of Lungsiakan Ubud.

Narrated on the journey of Rsi Markandhya from Mount Raung in East Java to Mount Raung in Taro Village, Tegallalang, to spread the teachings of Hinduism he came to a small hill that extends to the south and north, this hill is called Gunung Lebah which to the west there is a river flow Tukad Yeh Wos Kiwa (left) and east of the hill there is a river flow Tukad Yeh Wos Tengen (right), both rivers have a very clear water flow. The two streams meet in the southern part of Mount Lebah and the area is later called Campuhan. It was in this Campuhan that Rsi Markandhya established the Gunung Lebah Temple, he also held a hermitage and began to explore the forest to make settlements for his followers.

In accordance with Lontar Markandya Purana, the name of Sungai Tukad Yes Wos for the two rivers makes the name of the settlement of that period in accordance with the meaning of “Wos or Uos named Usadi, Usadi named Usada, and Usada named Ubad”. From the word Ubad is transcribed into “Ubud”.