Amarnath Cave, dedicated to Lord Shiva, is considered to be a sacred place by the Hindus as it believed to be the earthly abode of the Lord. Perched at a height of 3,888 m, the cave houses four or five ice formations resembling the figures of various gods. As tradition goes, the largest one is worshipped as Amarnath or Lord Shiva, the one on the left side of it as Lord Ganesha, and the one on the right as Goddess Parvati. Inside the Amarnath cave is another small cave to the left, where vibhuti or holy ash is distributed among pilgrims. Thousands of devotees traverse the mountains to visit this holy shrine during the months of June and August. This journey is popularly referred to as Amarnath Yatra and commences from Chandanwadi, passes via Pissu, Sheshnag and Panjtarni and concludes at Amarnath Cave.

Legend has it that Lord Shiva wanted to reveal the secret of the creation of the world and immortality to Goddess Parvati, and he chose the cave for the location. He entered the cave after removing all his ornaments but a pigeon's egg fell on his head. It is said that it became immortal and a pair of pigeons can still be seen in the cave. The cave is about 45 m high, 27 m long, and faces the south.