This temple being situated at a height, offers beautiful views and scenery. For the trekking and nature lovers,there is a small trek behind the temple which surrounded by deodar trees. Another popular place that is Chauli ki jali is very close to the temple. There are also idols of Goddess Parvati, Lord Brahma and Lord Vishnu at the temple. It is one of the main eighteen temples of Lord Shiva. The Mukteshwar town has its name based on this temple.
There is an ancient story associated with the temple, where there was a battle between Lord Shiva and demons, in which demons were defeated. However, demons attained mukti (libration) here.
It takes around two hours to reach the temple from Nainital using public transport.