The Bhootnath ancient temple, located in the main street heart of the town was built by Raja Ajber Sen in 1527 AD. This temple is devoted to the Great Lord Shiva and was built at the time when Our Himachal Pradesh State Capital was shifted from Bhiuli to present place. There is tradition of Raj Madhav Rao, the deity who ruled the Mandi state, visiting the temple and offer prayers before starting the procession of Maha Shivratri Fair along-with all the visiting hill deities.
In Mandi District you will get thausands of old temples & new temples. People of Mandi proudly boast that while Benaras (Kashi) has 80 temples, Mandi has 81 temples in small Town itself. Mandi is known for its 81 old stone temples and is often called the 'Varanasi of Himachal". Mandi is also known as the 'Kashi of the Hills' or "Choti Kashi". The town has remains of old palaces and notable examples of 'colonial' architecture for temples. The temples of Bhutnath, Trilokinath, Panchvaktra and Shyamakali are among the more famous ones. The week long international Shivratri fair in Mandi is the major attraction of the area every year.