Built by Suchat Singh (the King of Kashmir), this beautiful temple is dedicated to Chandi Devi. The real image of the Goddess is said to have been established by Adi Shankaracharya in the 8th century AD.
Chandi Ghat is about 3 km from the temple. Legend says that Chanda Munda (the army chief of the local demon king, Shumbha Nishumbha) was killed by the Goddess Chandi. Thus the place got the name 'Chandi'.