In 1663, Sri Guru Tegh Bahadur Ji visited Mullowal while travelling from village Rajo Majra during Guru Ji's tour of the Malwa region.

Guru Tegh Bahadur, and other Sikhs with Guru Sahib, camped near the village pond. Guru Tegh Bahadur tied his horse to a tree nearby.

When Guru Tegh Bahadur reached near a well in this village, Guru Ji asked for water. The villagers said that the water of the well was brackish and offered to bring water from elsewhere.

Guru Tegh Bahadur made the well water sweet, when the water was checked it was found to be sweet, therefore the name 'Gurdwara Sri Mitha Khooh Sahib'. The well still exists here.

Guru Tegh Bahadur asked the villagers to dig nine more wells. All the villagers sought Guru Ji's blessings, but the Chaudhry of the village named Gonda did not pay homage to Guru Ji. Chaudhry Gonda was a follower of 'Sakhi Sarvar Pir', but when his wife asked him to pay homage to Guru Ji, he asked for forgiveness from Guru Tegh Bahadur and Guru Ji blessed him.