This temple is located at a distance of 8.5 km from Dharamshala and just a few meters from the Khaniyara village, famous for its scenic beauties. Once when Arjun, of Mahabarat, was on his way to the Kailash Mountains. Lord Shiva appeared in front of Arjun and blessed him with the Boon of Victory over the Kauravas. At this place Baba Ganga Bharati has fired "Akhand Dhuni" (Sacred Fire).