According to mythological stories, when Lord Shiva, carrying the dead body of Goddess Sati, wandered around the world, a part of Sati's body fell at this location. This is how this Shaktipeeth was established here. The history of the Chaiti Bala Sundari Temple is linked to the reign of Aurangzeb. The upper part of the temple resembles a mosque-like dome. Legend has it that the ancestors of Pandit Vikas Agnihotri, Gaya Deen, and Bandi Deen were passing through this place many hundred years ago. They felt a divine power at this spot. When they searched, they found the temple. They immediately approached the ruling authorities to build a temple, but at that time, Aurangzeb was in power, and he refused. Meanwhile, Aurangzeb's sister, Jahanara, fell seriously ill, and despite various treatments, her health did not improve. Aurangzeb loved his sister dearly. Many physicians were consulted, but none could cure her. One night, the Goddess appeared before Jahanara in the form of a child and told her that if her brother, Aurangzeb, renovated the temple, she would be cured. When Aurangzeb heard this from his sister, he himself sent his labourers to renovate the temple. This is why there is a mosque-like structure on top of the temple today, which is a testimony to this story.

In the Chaitra month, a grand fair known as the Chaiti Mela takes place here. This fair, famous as the Chaiti Mela, attracts lakhs of devotees from far and wide who come to seek the blessings of the Goddess and make their wishes come true. It is believed that during these days, the Goddess resides in this temple and relieves all the sufferings of the devotees who visit.

In addition to Bala Sundari, this temple complex includes shrines for Lord Shiva, Brijpuri Devi, Bhagvati Lalita, and Bhairav, and Kali. Instead of an idol, there's a representation of the Goddess's right arm on a stone here, which is worshipped as a sacred symbol. The temple precincts also have a Kadamb tree that is hollow from within but full of branches and leaves. It's considered a symbol of the Goddess's glory.

At Chaiti Bala Sundari Temple, devotees offer coconuts, scarves, fruits, flowers, and flower garlands to the Goddess. In the past, animal sacrifices were a tradition, but now, coconut offerings are made instead.