Approximately 65 Kilometers from Jammu, on way to Salal Dam, Baba Dhansar is a beautiful and cool picnic spot. Here, a huge spring gushes out of the mountainside in a thick grove of trees and froms a number of small water-falls before flowing into the holy Banganga. Next to the spring in a small grove in the rock face is a naturally formed Shivling on which droplets of water fall naturally all the year round. A big mela is held here during Shivaratri. As the local belief goes, in the ancient times there was a demon that lived near Karua Jheel and committed atrocities on the people of village Karua. The villagers sought help of Baba Dhansar to get rid of the Demon. It is believed that Baba Dhansar prayed to Lord Shiva for help. Lord Shiva arrived and helped in killing the Demon. The temple of Baba Dhansar and a cave of Lord Shiva near Karua Jheel has become a place of worship. Karua Jheel is considered sacred where bathing is not permitted.