This temple is an ancient shrine located at Kankhal, and is one of the five sacred places around Haridwar. It is associated with Sati, the spouse of Lord Shiva who immolated herself to preserve his honour on being insulted by her father, King Daksha Prajapati. This incident provoked the disciples of Mahadev and killed King Daksha. But later Lord Mahadev brought him back to life. The temple is an attribute to this legend.
Daksha Mahadev Temple is also known as Shri Daksheshwar temple. It has a gilded image of a serpent symbolising Shiva.