This Gurdwara is situated at a distance of 32 Km from Batala and 40 Km from Gurdaspur City in the town of Shri Hargobindpur.

This town was founded by Fifth Sikh Guru, Shri Guru Arjun Dev Ji in 1587 and named Shri Hargobindpur after the name of his son. The town fell into ruins after the martyrdom of Guru Arjun Dev Ji. The Sixth Sikh Guru, Shri Guru Hargobind Sahib Ji visited the town in 1629 while coming from Kartarpur and rehabilitated the town. Bhagwan Das, a rich Khatri of the town felt jealous and challenged Guru Ji to vacate the area. A minor skirmish occured and Bhagwan Das was killed. Bhagwan Das's son Ratan Chand alongwith Chandu's son Karam Chand went to the Faujdar of Jalandhar to seek help. The faujdar sent Mughal troops to Sri Hargobindpur. A fierece battle was fought between Mughals and Sikh Army in which both Ratan Chand and Karam Chand were killed. Many Sikhs won martyrdom. Gurdwara Damdama Sahib has been constructed in the memory of those Sikh martyrs. At this place Guru Hargobind Sahib Ji loosened his Kamarkassa (a waist belt) to take rest after the battle of Shri Hargobindpur.