There are several theories associated to how the Salasar Balaji Temple came to be. A popular one about it dates back to one Saturday of Shravana Shukla, of Navami Samvat (1754 AD), when a Ginthala Jat farmer of Asota village in Nagaur unearthed a stone idol of Balaji while ploughing his field. The news of this discovery soon spread throughout the village and reached the ears of the Thakur of Asota. It is said that the Lord Balaji appeared in Thakur’s dream, asking him to send forth the idol to Salasar in Churu district. It was on the same night that Mohandas Maharaj, a Hanuman devotee in Salasar, dreamt of Balaji too. Mohandas sent forth a message to the Thakur of Asota, who was highly surprised to learn of all the tiny details that the prior had mentioned, without having visited Asota. The idol was then consecrated at a place that is now recognized as Salasar Dham. As per another version of the same story, the Thakur of Asota after having the dream, ordered for the statue to be moved to Salasar and placed within a temple. For shifting the idol, the Thakur purchased two bulls tied to a cart. It was decided that a temple would be built on the spot where these bulls would stop. Once the Salasar Balaji Temple was constructed, many traders and villagers moved to build their houses close to it, thus forming a village which is now recognized as Salasar.

Initially, the temple, as constructed by Mohandas Maharaj, with the help of craftsmen Noora and Dau, was a mud-stone structure. The temple, as it is now, took two years to complete. The temple has been built out of bricks, lime, cement, mortar, stone and marble. The entire structure of Salasar Balaji in Rajasthan is covered in white marble; however, the sanctum sanctorum, sabha mandap and circulatory path have been decorated with mosaic works and floral patterns in gold and silver. The entrance, doors and even the utensils used for rituals are all made out of silver. The main entrance of the Salasar Balaji Temple in Rajasthan has been carved out of marble.

Other than the annual fairs held at the Salasar Balaji Mandir, several other interesting religious practices are also observed in Salasar Dham. A few of these include Savamani or offering food up to 50 kilograms in weight to the deity, tying of coconuts in the temple premises using moli (scared thread, red in color) , singing artis, reciting bhajans, kirtans and Ramayana.