The basic idea of constructing a temple like Shirdi Mandir on a bigger scale originated from Shri Sai Mandir Dhantoli. To fulfill this purpose a body was formed in 1971. The legal fulfillment trust was formed in 1972, registered at the same time. The present site was purchased from Shri Banerjee in 1974, and the `Bhoomipuja` was celebrated in 1976. The remaining requirements (money for funds) was raised by donations, cultural programs etc.

The chief architect of Shri Saibaba Temple is Shri Shivdanmal. The idol has been donated by Shri Babulalji Warti, which is identical to the idol of the famous Shirdi temple. Shri Talim of Mumbai has provided the sculpture. The total construction was completed in 1979. The sacred ceremony of Consecration of the idol was performed during 1st December 1979 to 4th December 1979. Chief venerable Godavari Mata from Sakuri (a place near Shirdi) graced the holy occasion.

The Shri Saibaba Temple is believed to have the blessings of Shri Sai Baba himself. Thursday is the chief day for visit, when the visiting devotees` number goes up to 25,000, compared to the normal days of 2000 worshippers. Celebrations and festivities occur on the grand occasions of Gurupurnima, Navratri, Dashera and Ramnavami being celebrated for 10 days.