Situated near Chowk Putlighar, this gurdwara stands in a spacious groud. It is situated at the site where Guru Arjan Dev had welcomed his disciples who had come from Kabul to help him to construct the Hari Mandir. Later, the Guru used to hold religious gatherings of his followers here.
Once, Emperor Shahjahan came for hunting to the jungle surrounding this place. Here, he heard about the great popularity of Guru Hargobind who now occupied his father's seat. He sent a written request to the Guru, expressing his wish to see him. The Guru welcomed the Emperor at this place. The latter was highly impressed with the spiritual attainments of the Guru. Later, Guru Hargobind started his first battle against the Turks from this place. A big jagir of land is attached to the gurdwara. The Basant fair is celebrated here with great pomp and show.