Shangri-Llama is a well hidden village near Mt. Everest (most likely in Tibet, China) that has a mystical aura about it that keeps a sense of Spring or Summer warmth, even though the land around it is usually covered in snow. This area has both lamas (as in monks) and llamas (as in the animal Carl likes), and has a tendency to hold unusual customs. For example: while the country usually have "Peace and Love" monks across the valley, the area of Shangri-Llama is mostly home to "Law and Order" monks, who practice Kung Fu, escort lost children to safety, and take criminals to jail. More often then not, it is hard to tell if a monk is a guy or a girl (and some of them are girls) just because all but a few wear a hood that shadows their faces.
Those in Shangri-Llama held a long belief that a chosen one shall come to save them from evils far greater then the Law-and-Order monks could handle alone, and it is said the best way to tell who the chosen one will be is to remember he is "He who puts leg behind head"... this most likely symbolizes the bond of yin (upper body) and yang (lower body).