Located near the serene Karua lake, Baba Dhansar is one of the holy places near Katra. It has a Shiva temple and a gushing spring that emerges from rocks and falls into a thick forest. It re-emerges as many small waterfalls that form a pool while flowing into the valley. A grand fair is organised at the festival of Maha Shivratri in the area, and draws devotees from all over the area. Legend has it that when Lord Shiva went to Amarnath to show his powers of immortality to Goddess Parvati, he left his serpent Sheshnag at Anantnag. The serpent took a human form of Vasudev and had a son called Dhansar, who later became a saintly person. Thus, the place has been named after him.