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In ancient times, Khambhat was known as Trambavatinagar. According to Jain scriptures, the history of this idol dates back many millennia. During the era of the previous Tirthankara, Shri Neminath Bhagwan, in the Utsarpinikala (the ascending half of the wheel of time), an ardent Jain devotee named Ashadi Shravak created a stunning sapphire idol of Shri Parshvanath Bhagwan. He wholeheartedly worshipped this idol for many years. Subsequently, this idol was transported to Devaloka, where it was venerated for countless years. Eventually, it came into the possession of Nagaraj, who constructed a magnificent temple by the seaside and enshrined this illustrious idol therein. Alongside other deities, Nagaraj offered prayers to this idol for an extensive period.
During the time of the 20th Tirthankara, Shri Munisuvratswami, the epic saga of Lord Rama and the abduction of Sita by Ravana unfolded. Rama and his loyal brother Lakshmana found themselves near the seashore with a massive army, facing the daunting task of crossing the ocean to reach Lanka. They encountered the splendid temple of Parshvanath and entered it with deep faith and concentration. Within the temple, they fervently prayed to the Lord. Touched by their devotion, Nagaraj appeared before them and narrated the history of the idol. As they emerged from the temple, they were astounded to witness the ocean's waters miraculously frozen, allowing them to cross to Lanka with ease. In honor of this divine intervention, Rama christened the idol as Shri Sthamban Parshvanath. Even Lord Krishna graced this temple with His presence and was deeply impressed by the idol. He desired to transport this idol to Dwaraka and received permission from Nagaraj. A splendid temple adorned with rubies was erected in Dwaraka, and the idol was enshrined within. Unfortunately, when Dwaraka faced destruction by fire, a devout Jain layperson submerged the idol in the ocean to safeguard it. Subsequently, Nagaraj Takshashila honored the idol with 80,000 years of veneration, and Varundev continued the worship for 4,000 years.
A turning point occurred when a merchant named Dhan from Kantipur encountered trouble at sea. His ships inexplicably halted, refusing to move despite his best efforts. A celestial voice guided him against jumping into the sea, instead instructing him to retrieve the miraculous idol from the ocean depths, assuring him that it would resolve all his problems. The voice also revealed the history of the idol to Dhan. He then installed this Sapphire idol in a grand temple in Kantipur. Additionally, two other idols, one of Parshvanath in Charup and the other of Neminath in Sripattan, were discovered and are still present today.
Approximately 2,000 years later, a yogi named Nagarjun, a disciple of Shri Padaliptsuri, took the idol for his yogsadhana (spiritual practice). After completing his ascetic endeavors, he buried the idol by the banks of the Shedi river beneath a Palash tree. In a remarkable turn of events, Acharya Abhaydevsuri, who was suffering from a severe illness, contemplated a fast unto death (Anshan). A divine voice revealed the presence of the idol near the Shedi river and instructed him to sprinkle its bathwater upon himself. Accompanied by many devotees, the acharya embarked on a journey to the riverbanks. With unwavering devotion, he composed and recited the "Jayatihuana stotra." When he reached the 17th verse, the Lord's idol emerged from the ground. The acharya sprinkled the bathwater on himself and was miraculously cured. A temple was erected by the Shedi riverbanks, and the idol was installed there. Subsequently, in Vikram Samvat 1368, the idol was brought to Khambhat and enshrined in a temple. Over the years, numerous renovations have taken place, with the latest one occurring in the year 1984 of the Vikram era, under the auspices of His Holiness Acharyashri Nemisurisvarji.
Apart from this temple, the site hosts 16 other temples, and the Hemachandracharya Smrutimandir is also a prominent presence in this sacred place.