The Mirisaweti Dagoba was constructed by Dutugemenu between 161-158 BC after his defeat of the Tamil invader Elara. Dutugemenu, it is said, had the Mirisaweti Dagoba built in an excess of piety after remembering that he had eaten a whole red pepper (miris) as a relish with his meal without any thought to the share he should have offered the sangha. The Mirisaweti Dagoba commemorated victory over Elara as well, for it was raised over a spear containing relics of the Buddha, the customary source of protection in battle of Sinhalese kings. This spear had been planted in the spot by Dutugemenu while he engaged in water festivities in the nearby Tissawewa after the defeat of Elara.

The Mirisaweti Dagoba was rebuilt by King Kassapa V in 930AD, and modern restoration work, recently completed, began in 1979 with the support of UNESCO. It is surrounded on three sides by the ruins of monasteries, where there are some outstanding Buddha images. A little to the northeast is the monks' refectory that features a long stone trough into which boiled rice, enough for 1,000 monks, was poured by the lay followers of the monastery.