Mythological significance
Legend has it that during the Treta Yug, the demon king Ravana sought to attain immortality by propitiating Lord Shiva at Kailash. However, when his prayers went unanswered, he resorted to extreme penance at Kurah (now believed to be Manimahesh in Chamba District). Concerned about Ravana's quest for invincibility, the Devas beseeched Lord Shiva to intervene. Thus, Shiva halted Ravana's sacrificial rites and restored his ten heads, earning the title of Shri Vaidyanath.
As per the lore, Shiva granted Ravana's request to carry him to Lanka for consecration in the form of a linga. However, Shiva stipulated that he must not keep it on earth along the way. When Ravana felt an urgent need to relieve himself near Baijnath, he entrusted a shepherd with the sacred basket containing the Linga, cautioning against placing it on the ground. Unfortunately, the shepherd could not bear the weight of the basket and put it on the earth, leading to establishment of the Linga at Baijnath, with one half as Vaidyanath and the other as Chandrabhal.
Historical insights
The history of the temple is given in the two long inscriptions fixed on the walls of the mandapa of the temple. In CE1204 the temple was built by two brothers Manyuka and Ahuka, to house the sacred Sivalinga of Vaidyanatha, which existed on the site prior to its renovation but without any temple.
Over the centuries, the shrine witnessed extensive repairs and renovations, most notably during the reign of Sansara Chandra II, the Katoch king of Kangra, in the 18th century. The devastating earthquake of 1905 caused significant damage, necessitating extensive restoration efforts.