It lies 49 km (30 mi) east of the town of Mandi, and has a three storied pagoda-like temple dedicated to the sage Parashara situated on its bank.

The temple was built in the 14th century by Raja Ban Sen of Mandi in honor of the sage and thus, considering the Himachali architecture, the lake was named after him.

With deep blue waters, the lake is held sacred to the sage Parashar and he is regarded to have meditated there.

Surrounded by snow-capped peaks and looking down on the fast flowing river Beas, the lake can be approached from Mandi or from Bajaura in Kullu Valley.

So, Bheem (the strongest of the lot) rammed his elbow on one of the mountains and created a big dent in the land.