This is a five-storey pagoda-style temple of Lord Shiva. Inside the courtyard is a natural spring whose source, it is said. is the famous glacial lake of Gosainkunda. This temple was built by King Jayasthiti Malla while the golden finial was added later, in 1422 A.D. He also cleaned the pond near Kumbheshwar and installed various images of Narayan, Ganesh, Sitala, Basuki, Gauri, Kirtimukh and Agamadevata around the pond and in the courtyard. Ritual bathing takes place here every year on the day of Janai Poornima.