The temple was established in the 1960s by Sant Neem Karoli Baba. This temple is also Neem Karoli Baba's ashram, who is considered to be an incarnation of Lord Hanuman. Devotees claim to feel the divine presence of Lord Hanuman and Neem Karoli Baba in the ashram. Neem Karoli Baba took Samadhi in 1973, and since then, he has been considered an incarnation of Lord Hanuman. Kainchi Dham gained popularity when Steve Jobs, the former CEO of Apple Inc., visited the temple in 1973. During a stressful period in his career, Jobs came to India in search of answers to his questions and the ultimate truth of life. He meditated at the ashram and then returned. Later, Mark Zuckerberg, the CEO of Facebook, also visited Kainchi Dham in his quest for peace and knowledge. The ashram was initially established for Monday Maharaj and Sadhu Premi Baba to perform yagnas.

Every year, a fair is organized in the ashram on the birth anniversary of Neem Karoli Baba (June 15), attracting a large crowd of local people and tourists. This temple is one of the prominent pilgrimage sites in India. According to local legends, once during a shortage of ghee for cooking during a feast, Baba was instructed to fill a container with water from the river and use it for cooking. When the water was brought and used, it miraculously turned into ghee. Hence, this temple is considered miraculous.

The architecture of Kainchi Dham is simple yet attractive. The temple is constructed with stones, clay, and wood, and it has a pyramid-like shape. Inside the temple, there's a small shrine dedicated to Neem Karoli Baba. There are two large bells in the temple, which are rung during prayers. This temple is known for its unique architecture, blending traditional Indian temple architecture with Western influences. The entrance gate to the temple complex is marked by a large stone door with two monkey statues on either side. Inside the premises, there is a small temple with a beautiful white dome dedicated to various Hindu deities.

Fruits, flowers, sweets, and more are offered as prasad at Kainchi Dham Temple. Devotees can also offer prasad to the deities as per their faith.