Bagnath Temple is an ancient shrine dedicated to Lord Shiva, situated in the Bageshwar .The Temple of Bagnath situated here is venerated by one and all. Devotees gather here on every Monday of the holy month of Shravan to worship the Lord, who is also known as the remover of sorrows. During the fairs of Uttarayani and Shivratri, it becomes very difficult to control the hoards of devotees who come to attend these fairs from far and near.

The Nilaparvat, situated between the rivers Saryu and Gomti is inhabited by all the 33 crore Gods of the Hindu pantheon, the celestial being like Siddha, Gandharva, Vidyadhar, Urvashi etc. and manu sages. Irrigated by the Saryu, the Nilaparvat is held to be more important than the Vindhyachal. Those who desire to embrace death at place between Surya Kund and Agni Kund, become equivalent to the Gods by attaining salvation at the feet of Lord Shiva himself. During the reign of the Chands, the Shiva temple was constructed at Bageshwar.

Legend has it that when repeated attempts to install a Shiv Linga proved futile, it was Shri Manorath Pandey of Palayn village who succeeded in installing the idol after performing penance on the Shivratri. From then onwards, a massive fair is held on Shivratri each year to commemorate the event.