The temple spring complex is affectionately known as Ksheer Bhawani because of the thousands of devotees who have offered milk and 'Ksheer' to the sacred spring, which magically changes colour, turning black which warns of disaster.

The legend associated with the temple goes that Lord Rama worshipped Ragnya Devi during his exile. After the exile period got over, Rama asked Lord Hanuman to shift the seat of the goddess. The seat of the goddess was brought by Lord Hanuman first to Shadipora and later shifted to the site where the temple now stands. It is believed that it was the wish of Mother Ragnya that her seat be place at Ksheer Bhavani Mandir in Kashmir, India.

The temple of Ksheer Bhawani is situated at a distance of 14 miles east of Srinagar against the background of natural sight near the village of Tula Mula. This temple, is located in the middle of a spring, around which there is a vast area whose floor has been covered with smooth and beautiful stones. In it exist large and old chinar trees beneath which the pilgrims sit or sleep on mats of grass. The colour of the spring goes on changing. While most of the colours do not have any particular significance, the colour black is taken as an indication for inauspicious times for Kashmir.

And this wish was conveyed in dream to a pandit, Rugnath Gadroo. The temple of Ragnya Devi is called "Ksheer Bhawani" because numerous devotees offer milk and Ksheer (Indian sweet dish) to the sacred spring. It is believed that milk and Ksheer turn to black color to warn of any impending disaster. Maharaja Pratap Singh got the temple constructed in 1912. Later, Maharaja Hari Singh undertook the repair and restoration work on the temple. The eighth day of the full moon in May holds great significance for the devotees of Ragnya Devi. They fast on this particular day and gather at the temple in huge numbers. It is believed that on this day, the goddess changes the color of the spring's waters. The Ksheer Bhavani temple serves as the venue for an annual festival held in May-June, on the occasion of Jesht Ashtami. During this festival, a large number of Hindus visit the temple to seek blessings of the goddess. Another occasion on which the Ksheer Bhavani temple gains special importance is Shukla Paksh Ashtami. On this day, havans/yagnas are performed to please the goddess.

The Jammu and Kashmir Dharmarth Trust Council under the aegis of its Chairman, the world renowned Vedantic Scholar, Maharaja Dr. Karan Singh Ji and supervision of the Trust President, Th. Divakar Singh has affected a number of the improvements particularly during his presidency period.