Khajjiar is well known for the well liked Khajji Naga Shrine. This shrine came into existence in the 12th century; it is devoted to the snake god from which the name is thought to have been taken. This temple is considered to be an excellent mixture of Hindu and Mughal technique of design, which is indicated in its wooden carvings. Attractive images of dissimilar patterns can be observed on the ceilings and even on the wooden posts. There is difference of opinion regarding the images; some people believe the images to be of Kaurvas and some consider the images to be that of Pandavas.
The Khajji Naga Shrine is positioned on the edge of Khajjiar Lake and serves as the main attraction of Khajjiar. One can also witness the shrines of God Shiva and Hadimba in this place. A goat is sacrificed outside the temple in accordance with an old tradition that continues till date.