The most popular shrine in Mandi is that of Bhut Nath, who is venerated as the guardian of the town and represents Shiva in his attribute of the “Lord of Creatures.” The legend relating to the discovery of the idol is as follows:
Formerly, the land on the left bank of the Beas, now occupied by the town of Mandi, was waste, and the local zamindars used to graze their cattle. One cow, though newly calved, failed to give milk for several days. The owner, keeping a watch on her, discovered that she gave her milk to a stone.
The news reached Raja Ajbar Sen, and shortly afterwards, Shiva, in a dream, ordered him to dig beneath the image. The Raja did so, and the idol now worshipped in the temple of Bhut Nath was discovered. So the foundation of the present city was laid; for up to the time of Ajbar Sen, the capital was on the right bank of the river.
The temple is built of stone in the Shikhara style, consisting of a small porch and a sanctum (cella) surmounted by a spire. The sabha mandap in front appears to be an addition. The porch is supported by fluted pillars with capitals carved in elephants, the arch between being trefoil.
