Gurudwara Manji Sahib is situated on the National Highway 1, known as Sher Shah Suri Marg. The Sikh shrine wasis constructed at the place visited place by the sixth Guru, of Guru Hargobind Singh on his way to meet Mughal emperor, Jahangir. Gurudwara Manji Sahib also features a pond and a baoli (well), which is believed to have been constructed during the stay of Guru Hargobind Singh.
As per the legend of the shrine, the villagers of Majri complained of the water scarcity. Addressing their issue of perennial water shortage, Guru advised natives to dig a baoli. Owing to this, the famous pilgrim centre is also known as Baoli Sahib.
The site was turned to Gurudwara in 1764, when Dal Khalsa distributed territory of Ambala to Sardar Mehar Singh of Nishananwali Misl. Gurudwara was further rebuilt by Maharaja Hira Singh of Nabha during 1871-1911.