Devi Chandika is the eldest child of Banasur, one of the 18 siblings. Chandika was given the responsibility to divide the kingdom of Kinnaur among her siblings. But a thakur of Chini ruled Sairag with the help of a demon. To kill him Chandika took help of a female relative called Byche. Byche tricked him into a vulnerable position and Chandika slayed his head. Due to a blessing, a new head popped up. She kept cutting the head off but a new head kept emerging. Tired, she asked her brothers for help and was finally able to kill the demon.
The temple complex has one old temple built in the typical tower style of Kinnaur region. The new and main temple contains a golden image of the goddess sitting on an arc. At the time of worship, the palanquin is danced up and down.