Khatu Shyam Ji is believed to be the grandson of Bhimsen, one of the Pandava brothers from the Hindu epic Mahabharata. Legend has it that Khatu Shyam Ji was cursed to be in the form of a deity until the end of the Dvapara Yuga.
The idol of Khatu Shyam Ji is said to have been discovered by a milkman named Shyam in the village of Khatu. The idol was found in the form of a small head, and a temple was later constructed to enshrine it.
The construction of the Khatu Shyam Temple is attributed to a nobleman named Roop Singh. Over time, devotees and rulers contributed to the expansion and beautification of the temple complex.
According to legend, Roop Singh, childless and longing for a son, dreamt of Khatu Shyam Ji instructing him to retrieve his idol from the village pond. Upon doing so, Roop Singh not only found the idol but was also blessed with a son. In gratitude, he initiated the construction of the temple.
There is a popular belief that Khatu Shyam Ji's horse, named "Keshariya," is present in the temple. Devotees believe that the horse has miraculous powers and touching or even seeing it is considered auspicious.
The temple is significant for its association with the folklore of Khatu Shyam Ji and is a prominent pilgrimage site, especially for devotees from Rajasthan and other parts of North India.
The temple witnesses a large influx of devotees during festivals like Phool Bangla (Holi), Sheetla Ashtami, and Radha Ashtami. The annual mela (fair) held during the month of Phalgun (March-April) is particularly popular.
Devotees often offer prayers and perform rituals seeking the blessings of Khatu Shyam Ji. The temple is known for its unique customs and traditions.