Nageshwarnath Temple was built by Lord Ram's son Kush and has a mythical tale to it. It is believed that while taking bath in the River Sarayu, King Kush lost his amulet. The amulet was returned to him by a Nag-Kanya (Snake-damsel), who fell in love with him. Following this, Kush erected the temple for the Nag-Kanya who was a devotee of Shiva. The temple stands amidst numerous 'Matths' and 'Akhadaras' that make up the city. In the temple, festival of Shivaratri is celebrated with fervour.
It is believed that even after the rest of city had fallen into ruins and was covered by dense forests, this temple survived till the reign of Chandragupta Vikramaditya. Further, it is also claimed that by means of this temple, Vikramaditya was able to locate Ayodhya and the different shrines of the city.