During the separation of Buddhism and Shinto that took place in the early Meiji period, Buddhist statues including one of Yakushi Nyorai were moved to Dairen-ji Temple from Kankei-ji Temple of Gion-sha Shrine (now Yasaka-jinja Shrine).
明治初年の神仏分離に伴い廃寺となった祇園社（現在の八坂神社）観慶寺から薬師如来像などの仏像がこの寺に移されている。