As per the temple pandit ancestors, all this forest area today was considered to be the Dronacharya Nagri at his time. He used to regularly bathe in the Sway River and go to the Himalayas to worship Lord Shiva in the evenings. He was well to do and had a daughter named Yajyati. Once she adamantly asked Guru Dronacharya where he went regularly every evening and wanted to accompany him. Drona ji promised to take her along after some time and suggested her to worship Lord Shiva at home first with the main mantra (Beej Mantra), i.e. Om Namah Shivay, till that time. And she started worshipping with great devotion and faith. One day Lord Shiva got pleased and came to visit her in the form of a young boy. Since she did not have any particular wish so he started visiting and playing daily with her in that form of a boy.
Yajyati mentioned about him to his father that everyday a boy with 'Jataas' comes to play with her and the next day Dronacharya decided to find out about the mysterious boy. He returned back early the next time and discovered that it was Lord Shiva himself playing with his daughter. He bowed, prayed and asked Mahadev about this leela. Upon asking, Lord said that the child called him and he had to come.
Seeing this, Yajyati pleaded to Lord Shiva to stay with him forever. Lord, to this said that though he is present everywhere and also gives darshan to the one who calls with great faith and true devotion, yet because of her adamancy, HE will definitely visit this place every year at this time and this place will be one of places he will reside.
Then Guru Drone established The Pindi (Pindi Sthapana)/ Shiva Lingam through which Lord Shiva went invisible. This day was the second Saturday after Baisakhi. Everyone’s manokamna (wishes) gets fulfilled upon asking and visiting here this day.
Later on in the recent times, it is also said that when the Muslim Rulers after destructing the Hindu Temples and taking off the Janeus from the Hindus reached this place also and started disrupting this temple too, the Jalehri and Pindi started moving down. The then Muslim ruler instructed to leave the rest of the temple and just attack the Pindi. The moment they hit the Shiva Lingam, some venomous red colored creatures attacked them and whosoever they bit, started getting unconscious. Like this, thousands of soldiers fell there in the Mandir area. After it was only the king left, he realized his mistake and begged for forgiveness but could not find a way. The then old pandit of the mandir took the water from the Jalahri and sprinkled on everyone and the unconscious started recovering. Seeing this the ruler, bowed his head and realized his sin and returned with this people immediately.