The Nageshwarnath Temple was established by Kush, the son of the god Rama. The tale goes that Kush lost his armlet while bathing in the Saryu River. The armlet was picked up by a Nag-Kanya (serpent maiden) who, enamoured by Kush, fell in love with him. As she was a devoted follower of the god Shiva, Kush built this temple in her honour. Remarkably, this temple is the sole survivor from the time of Vikramaditya, as the rest of the city had succumbed to ruins and was engulfed by dense forests.
The existence of this temple played a pivotal role in enabling Vikramaditya to rediscover Ayodhya and the locations of various shrines in the area. The festival of Shivratri is celebrated at this temple with grandeur and splendour, adding to the sacred significance of this historical site.
