The name ‘Muchund' is derived after Raja Muchkund - the 24th king of the Suryavamsi Dynasty (the solar race). The enclosures around the place were built by Akbar.

Legend says that Raja Muchkund while asleep at this spot was woken up by demon Kaal Yaman while pursuing Lord Krishna. As Raja Muchkund was blessed with supernatural powers, the moment he woke up, Kaal Yaman was burnt into ashes. The spot is now a sacred place for pilgrims.