Bhuleshwar has a mythological & historical significance. Originally, it was a fort which was called as ‘Mangalgadh’. It is said that Parvati danced for Shiva and from here they went to Kailash and got married. This place is crowded during Mahashivratri.

The temple is also known for the folk-tale about it, when a bowl of sweet (pedhas) is offered to the Shiva Ling, one or more of the sweets disappear. Actor-travel writer Milind Gunaji writes about his experience with this in his book Mystical, Magical Maharashtra.

The temple also has an idol of Ganesha in female attire. It is popular as Ganeshwari or Lambodari or Ganeshyani.This temple is said to be built in 1200 century by King Krishnadevray.