As per regional tradition, the Hindu temple dates back to the period of the events of the epic Ramayana, identified as the location of the ashram of the sage.

According to legend, this is the site where the sage gave shelter to Sita, wife of Rama, after the deity decided that she not return to Ayodhya.

[9] On 9 September 2014, Punjab government failed to restore the possession of Dhuna Sahib and two other sites at the ancient shrine to mahant Baldev Giri on court orders.

[12][13][14] Foundation stone of Bhagwan Valmiki Tirath Asthan was laid on 18 October 2016 and this project was designed by Department of Architecture of Guru Nanak Dev University.

[16][17] The historic site was renovated with ₹200 crore (US$23 million) and has entrance portals at both ends, a sacred pond, circumambulation with a bridge, a devotee hall with capacity of 5000, a Sanskrit library, a museum and a multi-storey modern car parking with a capacity of 500 four-wheeler vehicles.