According to a legend and religious experts, these particular caves largely date to the time of the Mahabharata. It is strongly believed that the Pandavas during their "Agayatwas" (exile) stayed in those caves for a short period. It actually served as the shelter of the Pandavas. It is actually situated at the hilltop. With a copper Yoni, it has a white marble Shivling. It is to be highly noted that the said Shivling is perfectly surrounded by the idols of Lord Ganesha, Lord Brahma, Goddess Paravati, Lord Vishnu and Lord Hanuman. On the day of Shivarathri, thousands of adherent devotees and pilgrims visit this religious spot along with their family members, relatives and friends. Other festive days are Beshaki and Chodiya Amvseya. The Right Bank of the River Ravi is in J&K State and the left bank of river falls in the Punjab State. Having bath in this river on auspicious days is regarded as holy. This particular act washes away the sins committed in personal and professional life to a great extent. The cave temple premises have a calm and quiet atmosphere that is perfectly suitable for conducting various kinds of prayers, pujas, homams, yagna and other religious functions and activities to a large extent.
The architectural style and pattern of Mukteshwar Temple is based on ancient North Indian architecture. This cave temple is beautifully carved in this rocky terrain. The prayer hall in the cave is broad with proper ventilation facilities. The flooring and ceiling of this shrine follows the same style and pattern of the cave architecture. The sub-temples are located at equal distance from the main temple within the cave temple complex. There are fleets of steps that lead to the main temple and its related sub-temples with a lot of perfection. The main sanctum is very small structure when compared to other Lord Shiva temples of this particular region. The cave is really attractive in many aspects.
The Mukesran Da Mela or the temple fair is conducted in a grand manner in the month of April, to order to mark Baisakhi. This fair is attended by local people and devotees from the rest of Punjab plus people from the neighboring states of Rajasthan, Jammu and Kashmir and Himachal Pradesh. At Mukteshwar Temple, most of the Hindu auspicious days and festive days are celebrated in a religious manner. This particular temple is known for performing various types of Shiva pujas on all the Hindu auspicious days as per the Vedic rules and regulations in a very strict manner. Maha Lakhmi Puja is largely performed for happiness in family, health, beauty, food, children, marriage, fortune, wealth, friends, divinity and purity. Shiva Shakti Puja is conducted to assist in spiritual progress, to improve harmony in personal and professional life plus and integrating materials.