Shree Lokanath Temple ranks next in popularity after the Jagannath Temple of Puri and is just 3 kms away from the world famous Jagannath temple. This temple is dedicated to Lord Shiva and it is said that it was under a pond over here that Lord Shiva had hidden from Shani. People believe that the Linga of this temple was mounted there by Lord Ramachandra. A natural spring of the adjacent Parvati tank ensures that this Linga contained in the small square-shaped container is always in water.
Devotees who wish to see it can do so on the night before the Sivaratri, that is, on 'Pankadhar Ekadasi', when all the water is drawn out so that devotees can worship the Linga. The divine grace of Lord Loknath is believed to remove pain and anguish, and people suffering from various fatal diseases have been found to be cured here through prayer.