The temple is situated on the main road with the icons of Khandoba, Banai and Mhalsai. The temple is dedicated to Khandoba, the presiding deity of the town.
It is believed that Sai Baba came to Shirdi for a second time with a marriage party and set his foot under a Banyan tree. The priest named Mhalsapati first spotted the homeless fakir and welcomed him to Shirdi by saying ' Aao Sai' meaning 'Welcome Sai' in Marathi. This place is one of the 13 most important temples dedicated to Khandoba, the most important one being at Jejuri, near Pune.