Norbulingka is considered the premier park of all such horticultural parks in similar ethnic settings in Tibet. During the summer and autumn months, the parks in Tibet, including the Norbulingka, become hubs of entertainment with dancing, singing, music and festivities. The park is where the annual Sho Dun or 'Yoghurt Festival' is held.

Sho Dun Festival also spelled Shoton Festival, (popularly known as the "yogurt festival") is an annual festival held at Norbulingka. The date for the festival is set according to the Tibetan calendar, which is a Lunar-based calendar. The festival is celebrated during the seventh month in the first seven days of the Full Moon period, which corresponds to dates in July/August according to the Gregorian calendar. The week-long festivities are marked by eating and drinking, with Ache Lhamo, the Tibetan opera performances as the highlight, held in the park and other venues in the city. On this occasion, yak races are a special attraction held in the Lhasa stadium. During this festival, famed Opera troupes from different regions of Tibet perform at the Norbulingka grounds; the first opera troupe was founded in the 15th century by Tangtong Gyelpo, considered the Leonardo da Vinci of Tibet.