The first in this Reincarnation Lineage was Khendup Geleg Namgyal Pelsang a student of Je Tsongkapa. Only later when the fourth Dalai Lama gave his teacher Lobsang Chökyi Gyaltsen the title "Panchen Lama" was this Reincarnation lineage officially established. For this reason two numbering systems of the Panchen Lama Lineage exist.
The Panchen Lama is the second highest ranking lama after the Dalai Lama in the Gelugpa (Dge-lugs-pa) sect of Tibetan Buddhism (the sect which controlled Tibet from the 16th century until the Communist takeover). The successive Panchen lamas form a tulku reincarnation lineage which are said to be the incarnations of Amitabha Buddha. The name, meaning "great scholar", is a Tibetan contraction of the Sanskrit paṇḍita (scholar) and the Tibetan chenpo (great).
The Panchen Lama bears part of the responsibility for finding the incarnation of the Dalai Lama and vice versa. Furthermore, the search for the late Panchen Lama's reincarnation, or any reincarnation, is a religious matter. In the case of the Panchen Lama, the religious procedures traditionally involve a final selection process by the Dalai Lama.
This has been the tradition since the Fifth Dalai lama, Ngawang Lobsang, recognized his teacher as the Panchen (Great Scholar) Lama of Tashilhunpo Monastery (Bkra-shis Lhung-po) in Shigatse (Gzhis-ka rtse). With this appointment, Lobsang Choekyi Gyaltsen's three previous incarnations were posthumously recognised as Panchen Lamas. The Fifth Dalai Lama also recognized Panchen Lobsang Yeshe (Blo-bzang Ye-shes) as the Fifth Panchen Lama. The Seventh Dalai Lama recognized the Sixth Panchen Lama, who in turn recognized the Eighth Dalai Lama. Similarly, the Eighth Dalai Lama recognised the Seventh Panchen Lama.