Guru Nanak Dev ji was sent by his father, Mehta Kalu ji with a sum of Rs.20/- to teach him the know-how of business. On the way to his destination, the Guru happened to meet some hungry sadhus. Guru ji fed the sadhus with the money his father gave him. Where Guru Nanak ji fed the sadhus, now stands this Gurdwara, this Gurdwara has a huge and beautiful Darshani Deorhi.

Guru ji called the feeding of the sadhus, "Sacha Sauda", so this Gurdwara was named Sacha Sauda. This holy place is situated at a distance of 37 miles from Lahore on the Lahore-Lyallpur Railway Line.

After the partition of the Indian sub-continent, the Gurdwara remain closed and no ceremonies were performed, but since the Baisakhi in April 1993, sangat was allowed to pay homage to the Gurdwara.