A lake is believed to have been created by Lord Shiva when he thrust his Trishula (trident) into a mountain to extract water so that he could cool his stinging throat after he had swallowed poison. There is a large rock in the center of the lake, which is said to be the remains of a Shiva shrine. People often claim that they see Shiva lying in the water. Devotees gather here in hordes on the full moon night of August to take holy dips in the lake.

Gosainkunda is situated at the altitude of 4380m to the north of Kathmandu on the Langtang trekking trail. The holy lake is a two day long trek from Dhunche, which can be reached through an adventurous 118km mountain road from Kathmandu via Trishuli Bazaar. Small hotels and pilgrim shelters are here for travellers.