The Gurudwara marks the sacred site visited by Guru Nanak Dev Ji during his second Udasi (missionary journey), around 1567. Tradition holds that he stayed in Betma for nearly six months, during which he inspired local communities with teachings of peace and unity

According to local belief, the water in Betma was undrinkable until Guru Nanak performed a miracle: the once salty water became sweet, and a stepwell (baoli) was dug at the site, which still exists within the complex