Bhaikhali is a quaint village of Brahmins, nestled in the hills, about 10km from Kullu town. It is the abode of Jagannathi Mata, also called Bhuwaneshwari, sister to Lord Narayan. Bhaikhali temple is 1500 years old, an excellent sample of local art; a full sized lion built of stone stands on the lawns of the temple. The walls of the temple are adorned with paintings of Goddess Durga in a range of activities.

Legendary stories abound the Bhaikhali temple, a usual phenomenon with such an old temple. It is said that a boy from the Palsara family had gone to graze cattle. He was a fine flute player. Once while he was engrossed playing his flute, he noticed that two girls were dancing to his tune. To his bewilderment, he discovered that the feet of the girls were not touching the ground while they were dancing. Therefore, he caught one of the girls to know the truth. The girl divulged her identity and decided to stay back in the village. At that time, Lord Narayan vacated the temple of the Goddess.

Three fairs are held in the months of April and June; the Kullu Dusshera festival is also held here in Baikhali temple complex. On the main Dusshera day, the gur-khel is worth a sight. After sunset, the goddess is taken out on a chariot. The place radiates a breath-taking sight at a sublime height of 1833 metres.