One of the ancient pilgrim destinations, Grishneshwar is the abode of one of the holy 12 Jyotirlingas, the ancient and holiest Grishneshwar Jyotirlinga temple. The temple has been built by Ahilyabhai Holkar, and is also known as Kusumeswar, Ghushmeswara, or Grushmeswara. These names are related legendary stories of the origin of Grishneshwar.

According to a legend, it is believed that a devout woman Kusuma offered worship to Shiva regularly, as a part of her daily ritual worship, by immersing a Shivalingam in a tank. Kusuma's husband's first wife, envy of her piety, murdered Kusuma's son in cold blood. An angry Kusuma continued her ritual worship, and the moment she immersed the Shivalingam in the tank, her son was miraculously resurrected. Shiva is said to have appeared in front of her and the villagers and thus worshipped in the form of a Jyotirlinga Ghusmeshwar here, also known as Kusumeshwar Jyotirlinga.

Apart from devotees, many tourists visit this place to understand the ancient temple customs and routines along with the ancient architectural style of the temple. What also attracts them is the images and the inscriptions of the temple. The festival of Maha Shivaratri is a very important here and is celebrated with much vigour, during which thousands of devotees flock to this temple town.