Karmapa Thaye Dorje is regarded by his followers as the 17th Gyalwa Karmapa, the traditional spiritual head of the Karma Kagyu school, which is a principal branch within the broader Kagyu lineage of Tibetan Buddhism. In this role, he stands as a central lineage-holder for those who look to the Karma Kagyu transmission as their primary path. His position is not merely administrative; it is understood as the living continuity of a stream of realization and practice that has been handed down through generations of masters.

His connection to the Kagyu lineage is rooted in the belief that he is the reincarnation of the 16th Karmapa, Rangjung Rigpe Dorje. The Karmapa line, beginning with Düsum Khyenpa, is widely regarded as one of the earliest and most significant reincarnate lineages in Tibetan Buddhism, and it serves as a core vehicle for the Kagyu teachings. Through this reincarnation lineage, Karmapa Thaye Dorje is seen as embodying the accumulated blessings, responsibilities, and commitments of the previous Karmapas, thereby linking past, present, and future practitioners of the tradition.

Recognition plays a crucial role in this connection. Karmapa Thaye Dorje was identified and enthroned as Karmapa by Shamar Rinpoche, traditionally held to be the second-highest lama of the Karma Kagyu school. This recognition, carried out through established methods such as searching, divination, and assessment of spiritual qualities, is understood by his followers as affirming his place within the unbroken chain of Karma Kagyu masters. Through this process, his status as a bearer of the Kagyu teachings is not merely symbolic but ritually and institutionally confirmed.

In practice, his link to the Kagyu lineage is expressed through the reception and transmission of its core teachings and practices, such as Mahamudra and related meditative disciplines. From his bases in exile, he oversees monasteries, dharma centers, and educational institutions associated with the Karma Kagyu tradition, offering teachings and empowerments to disciples. In this way, he functions as a contemporary custodian of the Kagyu heritage, ensuring that the doctrinal, contemplative, and institutional life of the Karma Kagyu school continues to flow through the present generation of practitioners.