The temple is believed to have originally been built by Emperor Ashoka (3rd century BCE) as a Buddhist shrine, later converted to a Hindu temple. The current structure dates to the 8th century CE, built during the reign of the Karkota ruler Lalitaditya Muktapida (724-760 CE), the greatest king of Kashmir. The temple is named after Adi Shankara (c.
788-820 CE), the great Hindu philosopher and reformer, who is believed to have visited this site during his Digvijaya (conquest of the four quarters) and composed the Nirvana Shatakam — a six-verse hymn on the nature of the Self. The temple was also known as 'Takht-e-Sulaiman' (Throne of Solomon) during the Muslim period, reflecting a local legend that connected the hill to the biblical prophet Solomon.
The temple was restored by the Dogra rulers of Jammu & Kashmir in the 19th century. During the 1990s insurgency in Kashmir, the temple remained open under the protection of the Indian Army, becoming a symbol of Kashmir's pluralistic heritage.
