Maharaja Bhupinder Singh had intended to build his palace at this site and had even started construction. However, it is believed that a 'sidh' (a "Saint") appeared in his dream and requested that he not build the palace there. He subsequently built the Sidh Baba Ka Mandir at this location. The ~4 km from the bazaar to Siddh Baba ka Mandir goes through the Cantonment area.
Chail is the abode of many religious places; one such important place is Sidh Baba Ka Mandir. As per mythology and local legends, a saintly figure - a Sidh came in the dream of Maharaja Bhupinder Singh, who originally planned to build a palace at this place and informed that this was the place for a Mandir and not for a residential palace. Hence the pietious Maharaja constructed and dedicated to the saint and mandir was known as Sidh Baba Ka Mandir. The surroundings are scenic and the Mandir is a good picnic spot to visit.