Located 10 kms from Katra (1 km on foot) is Baba Dhansar, a beautiful and cool picnic spot. Here, a huge spring gushes out of the mountainside in a thick grove of trees and forms a number of small waterfalls before flowing into the holy Banganga. Next to the spring in a small grove in the rock face is a naturally formed 'Shivling' on which droplets of water fall naturally all the year round. A major 'mela' (fair) is held here during Shivratri.
Baba Dhansar Temple is located 15 km away from Katra on way to Salal Dam. A huge spring emerging from the rocks forms a number of small cascading waterfalls before flowing into the holy river that merges with the Chenab River. At Baba Dhansar Temple, devotees find a naturally formed Shivling, on which droplets of water fall at a constant pace throughout the year.