According to historical records, the temple's history dates back over 1000 years. Evidence of the worship of Goddess Nanda can be found in ancient scriptures, Upanishads, and Puranas. Around 1617, it is said that King Baz Bahadur of the Chand dynasty brought the golden idol of Goddess Nanda Devi to Almora after winning the Badhangarh Fort. He installed the idol in the Mall Mahal (Old Collectorate) premises and began worshipping her as the family deity. In 1815, a fierce conflict erupted between the British and the Gurkhas, during which the temple, along with the buildings of Mall Mahal, was damaged. The locals are said to have made numerous pleas to the British to build a new temple for Goddess Nanda, explaining it as her divine will. During a sudden visit, Commissioner Trail Sahib lost his eyesight. Advisers attributed it to the goddess's wrath and suggested he build a new temple. Following this, a new temple for Goddess Nanda Devi was constructed at the present location, along with a Shiva temple, and the idol from Mall Mahal was shifted here. It is said that after the construction of the temple, Commissioner Trail Sahib miraculously regained his eyesight. It's worth noting that the current idol of Goddess Nanda Devi in the temple is not the one brought by King Baz Bahadur. Legend has it that the original idol, made of eight metals, was stolen. Raja Anand Singh of the Chand dynasty then had a new idol of Goddess Nanda Devi crafted and installed at the temple.

It is believed that Goddess Nanda Devi appears to her devotees in dreams and fulfils their wishes. The worship of Goddess Nanda Devi is conducted with tantric rituals, considering her as the embodiment of Tara Shakti. It is believed that Goddess Nanda Devi takes away all the sufferings of her devotees and protects them.

The sacred temple of Nanda Devi, representing the incarnation of Hindu Goddess Durga amidst the tranquil surroundings of Kumaon, is beautifully constructed. Inside the temple, there is a magnificent idol of the goddess adorned with a stone 'amalak' or crown. Goddess Nanda Devi, revered as an incarnation of Shailputri, is enshrined here. The temple is constructed on the Devadh hill near the Shiva temple. The temple walls display several intricate stone carvings created by skilled artisans of that era. Within the temple premises, there are three shrines - Parvateshwar Temple, Udyot Chandreshwar Temple, and Nanda Devi Temple.

Devotees offer coconuts, sweets, fruits, flowers, and scarves in the Nanda Devi Temple.