During the 18th century, a famous cloth merchant named Badri Das often walked to the Delhi Ridge of Aravalli range, which was covered with flora and fauna. While digging near a waterfall, the idol of Jhandewali Mata and a stone lingam with carvings of nāga were found by him. Das built the temple on the spot. Since the hands of the idol were damaged during excavation, hands of silver were made and the original statue was consecrated in the cavern basement which came to be called Maa Gufa Wali (The Mother Goddess of Cave). A new replica of the idol was installed on the ground floor which came to be called Maa Jhande Wali (The Mother Goddess of Flag). Since a large prayer flag was installed by Badri Das, who came to be known as Bhagat Badri, the place came to be known as Jhandewala (the place of the flag). Within the temple compound there are subsidiary temples of Shiva as well as Kali. The temple is run by the nonprofit organization trust Badri Bhagat Jhandewalan Mandir Society.