The place gets its name from a notable occurrence. Master Gobind Singh, after the fights with Mughals at Chamkaur Sahib, Anandpur Sahib and Muktsar, went to the backwoods of Malwa. In the Talwandi Sabo, Guru Gobind took "Dam" or rest for 9 months and 9 days and from that point forward the place is called by this name. Damdama Sahib is busiest amid the Baisakhi Fair
It is otherwise called Guru-ki-Kanshi, as Guru Gobind made this place a center for lecturing. This place is likewise known by the name of Khalse Da Takhat as he re-conveyed Adi - Granth at this spot. Indeed, even a seal was set up at this place. Damdama Sahib has three tanks and ten Gurudwaras. The Nanksar Saro was named after Guru Nanak Dev Ji who went to this villa in 1510 A.D when he went on his second Padyatra to Rajputana.