The beginning of Baneswar Shiva temple is mired in mythology. According to popular belief the legendary Raja Banasura, an ardent devotee of Shiva had made the latter agree to come down to earth. When Shiva was following Raja Banasura, the latter suddenly stopped at Baneswar (earlier name Gordasandara), which was a breach of agreement. Shiva instantly disappeared and later established a Shiva-linga on the banks of the Bangti River. Many believe that the place was named after the Raja. However, there is no mention of the temple in the legend.