Hasan Abdal is an ancient city situated at a distance of 45 kilometers from Rawalpindi to the west side of the mountain. It is hilly area.A few places have natural springs.

According to Sakhi Guru Nanak alogwith Bhai Mardana reached Hasan Abdal in Baisakh samwat 1578 B.K. corresponding to 1521 A.D. in the summer season. Sitting under a shady cool tree, Guru Nanak and Bhai Mardana started reciting kirtan.

According to legend, Bhai Mardana felt thirsty, Guru Nanak Dev Ji sent Bhai Mardana to Baba Wali Qandhari,a muslim saint, who lived on a hill top.

When Baba Wali Qandhari refused to give water three times and even used harsh words for Guru Nanak, he said to Bhai Mardana "Why don't you ask your master whom you serve, to give you water?" When Bhai Mardana came back and prefered death to thirst, than going back to Wali Qandhari of water.

Guru Nanak Dev Ji removed a big piece of stone where he was standing and a Spring of pure water began to flow endlessly.Bhai Mardana quenched his thirst and felt greatful to God.

On the other hand, the Well of Wali Qandhari got dried up. Seeing this Wali in rage, rolled down a big stone towards the Guru, from the top of the hill. The true Lord halted the hurled stone with his hand. An indelibe mark of Guru's hand was inserted in the stone. Observing this miracle the ego of the Wali vanished and he became the Guru's fast devotee.

Several attempts were made to deface the impression of the hand of the Guru but all of no avail and the mark remaines for ever and ever.This holy place is now known as Panja Sahib.

Since 1947 The administration of this Gurdwara is with Pakistan Waqf Board. A particular jatha visits this place every year on the eve of the Baisakhi festival. A Singh resides in the campus of the Gurdwara from the Board and maintains the pious Maryada, People who visit Panja Sahib also visit the place on the hilltop where Wali Qandhari lived.