The temple is very significant in many manners. Since, it is situated along the banks of the river Yamuna, this is considered as the abode of Lord Shiva in true sense. This is due to the fact that Lord Shiva is also known as the God of sea. Further, Lord Brahma is believed to have received the knowledge of the Veda's by performing meditations in the Nigambodh Ghat. The spot in the temple has been marked and it is also worshipped by the devotees of the temple. The temple has been mentioned in the Purana's a few times which speak of the sanctity of this monument.

Mythology tells that the Lord Yudhistir conducted as special kind of Yajna after defeating all the kings in the territory. This was called the Raja Suyi Yajna. Since, then anyone who performs a Rudraabhishek following all the norms and guidelines is believed to get the blessings of Lord Shiva. RudraAbhishek and meditation are two forms which are observed here with full dedication and devotion.

The main event which is held in the Nili Chhatri Mahadev Shiva Temple is the Rudra Abhishek done during the month of Savan. Savan month is observed as Lord Shiva's month and hence any ritual performed during this month is considered very pious. Rudraa bhishek is done almost 150 times during the 24 hour period. All the more Maha Shivratri is also held here with great grandeur. Throngs of devotees flock here during this period just to worship the God. Nili Chhatri Mahadev Shiva Temple is one of the unique temples in New Delhi, which is considered very holy and pious. The water from the river Yamuna is also considered very sacred. Situated in the Nigambodh Ghat, this lies very close to the metro station in Delhi and is easily accessible by roads and railways. The temple is located very close to bahardur shahi gate of the Salimghar fort, in Yamuna bazaar. The nearest railway station as well as airport is in Delhi itself. It is strategically situated near a very famous bridge known as the Purana Lohia pool which was built in the British period.