Yalung is a part of Kyrati mythology. In The Goat's notes, it is said that at one point Yalung was jealous of Banashur's power. As Banashur is said to be the creator deity, we can only assume that Yalung is a demon due to said jealousy.
Yalung might be a younger deity or child of Banashur along with Kyra. He is a demonic entity in the Kyrat mythology.
The Goat states in his notes that Banashur was jealous of Yalung. In Chal Jama Monastery, a goat can be seen being sacrificed to Yalung to keep him at bay.
Yalung lives in all and comes in the form of hate, jealousy, anger, and all negative feeling and emotions. There is a thangka painting of Yalung which depicts him with what appears to be three eyes similar to the circle on the top of the mask of Yalung.
The Goat worships Yalung as a provider and a great God. The Goat sacrifices his victims to Yalung, stating that he pulls Banashur’s Lotus children from the ground and teaches them to walk on hooves, like hooves on Satan.
Thousands of years ago, Banashur and Yalung fought a long battle and in the end Banashur broke Yalung into pieces and scattered him across the land. Hence you will find different locations in Kyrat named after Yalung in reference to his body such as Yalung's Tears, Yalung's Heart and Yalung's Mind, among other locations in the game.
- The Goat sacrifices his victims to Yalung, with Masks of Yalung being found close by the victim's corpses.