It was first built by Jalauka, the son of great Emperor Ashoka, about 200 B.C. The temple was later rebuilt and dedicated to Jyesthesvara by Gopaditya, who ruled from 253 A.D. to 328. The hill was called Gopadri and the village at its foot on the south is still called Gopkar. It is also said that once Shankaracharya, a famous Hindu saint, came to Kashmir from South India to revive Hinduism. He stayed on the top of the hill for sometime and the hill thus came to be known as Shankaracharya hill.
This temple stands on a solid rock and consists of an octagonal basement of 13 layers. Each of the four sides has two projections which terminate in pediment and agable, the latter intersecting the main roof half way up its slope. The body of the temple is surrounded by a terrace enclosed by a stone wall or parapet, 3.5 feet high. This in following the outline of the basement, preserves its octagonal shape. From the terrace another flight often steps leads to the door of the temple. The interior is a chamber, circular in plan, with a basin containing a lingam. The whole of the building is of stone, which is laid throughout in horizontal courses, no cement appearing to have been used.