Seven lakes associated with the Pandavas of Mahabharata are located at Rewalsar. It also associated with the legends of Lord Shiva and Lomas Rishi. There is also a famous Krishna temple in the town.
The Hindu history of Rewalsar is found in Skanda Purana. A Hindu sage named Lomas was searching for place to worship. He traveled and climbed the top of Drona mountain, from the top of mountain he saw a beautiful lake surrounded by beautiful trees, flowers and birds. He decided to meditate at the bank of the lake, written as Hridyaleshwar in Skanda Purana. He meditated here, and Lord Shiva and Goddesses Parvati blessed him by imparting the secrets of this place where all the Devas and Ganas are in the form of flowers, and trees.