Located at a distance of about 3km from McLeodganj, this medieval temple is a major religious attraction for the Hindus. It is dedicated to Lord Shiva and is said to be constructed by King Bhagsu. In earlier times, the shrine served as a major religious place for the Gorkha rulers who were known as Bhagsuwalas. Nearby the temple, there is the beautiful Bhagsu Waterfall which is a pleasing tourist destination to relax around. It has a cascade of 30 feet that looks stunning in the monsoons and adds to the beauty of the entire ambience.