Sri Guru Gobind Singh Ji came to Jaito after visiting Kotkapura and elsewhere on 15th April 1706. Guru Ji stayed near a Tibba (mound of sand) and was practicing archery with his Sikhs. This is where Gurdwara Sri Tibbi Sahib Jaito is located.

According to some accounts, Jaito took its name 'Gangsar' from a story in which Sri Guru Gobind Singh Ji saw a man crying.

Guru Gobind Singh asked the man why he was crying to which the man replied that he was crying because he lost a valuable urn in the Ganges river (located many hundreds of kilometers away).

After hearing the mans misfortune, Guru Gobind Singh shot an arrow at a distance of about 700 meters. The arrow struck the ground and opened a water source. Guru Gobind Singh said the water was the same as the Ganges river. The man went to fetch water and discovered his lost urn. And so, this place was named Gurdwara Sri Gangsar Sahib Jaito.

Sikhs congregate at Gurdwara Sri Gangsar Sahib Jaito on 10th Phagun every year in memory of the Sikhs who sacrificed their lives during Jaito Morcha and this is known as Shaheedi Jor Mela.