The name Dhabaleswar ( Dhabala or White + Eeswar or God ) is credited to a marvel performed by Lord Shiva. When a criminal took a dark bull calf from a town and escaped to a Shiva sanctuary. He stowed away with the calf in the sanctum while the irate group held up external the sanctuary. The group could plainly hear the calf calling out. The cheat asked intensely Lord Shiva to convey him from the group. Showing compassion for him, the Lord showed up as a Sanyassin before the group and asked them the reason for their disturbance On being informed that they associated the cheat with stowing away in the sanctum alongside the dark calf, the sanyassin brought the calf outside to dissipate their questions. The calf ended up being white, seeing which the group let the criminal go. The sanyassin vanished and the cheat acknowledged who had gone to his guide. He admitted and apologized to the group. He took a promise to spend the remainder of his life in the help of the Lord. The demonstration of turning a dark calf to white made Lord Shiva be otherwise called Dhabaleswara.

The current sanctuary structure was built by Bir Kishor, leader of Khurda. It is said that once he set out on a chase with his own protectors and orderlies. Throughout the chase, they found the first sanctuary which was in a forsaken state. The ruler requested the remodel of the sanctuary, allowed a space of land estimating 314 mana. He additionally depended on the consideration and administration of the sanctuary to one Mali. The group of Mali, later on, discovered the town of Malisahi which falls while in transit to the sanctuary. This was done in 1153 of the Saka period which would be 1232 AD. The present-day sanctuary was remodeled and fixed by Athagarha Debbator Authority. Sambit Patri is the central minister of the sanctuary.