The town got the name Baijnath from one of the many names of Lord Shiva, Baijnath. The ancient Temple of Lord Shiva situated here is believed to be one of the twelve Jyotirlingas. Lord Shiva here is worshipped as Vaidyanath meaning the Lord of Physicians. According to legend, it is believed that the Shivling that Ravana got from Lord Shiva along with his power of immortality was placed on the ground here in Baijnath, and it remained there since.
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