The cave is a holy place for Hindu pilgrims, because of its ice content. One very characteristic pilar of ice is believed to be an ice lingham, the phallic symbol of Lord Shiva. Two smaller ice stalagmites represent Parvati, his wife, and Ganesha, his son. The Hindu pilgrims also believe, that the height of the lingham increases and decreases with the phases of the moon. In the month of Shravan, on the full moon in August, thousands of Hindus go on a pilgrimage up to the cave. At this time the lingam reaches its biggest size.

A legend tells, that Lord Shiva explained the secret of creation to Parvati in the cave. Two mating doves heard this and now live in the cave for eternity, being reborn again and again. This legend is confirmed (at least in the eyes of believers) by flocks of doves near the cave, with no vegetation around.

Another legend tells that Kashyap Reshi drained a big lake, which became then the Kashmir valley of today. The cave was discovered by Bregish Reshi.

According to an ancient tale, there was once a Muslim shepherd named Buta Malik who was given a sack of coal by a sadhu. Upon reaching home he discovered that the sack, in fact, contained gold. Overjoyed and overcome, Buta Malik rushed back to look for the sadhu and thank him, but on the spot of their meeting discovered a cave, and eventually this became a place of pilgrimage for all believers. To date, a percentage of the donations made by pilgrims are given to the descendants of Malik, and the remaining to the trust which manages the shrine.

Whatever the legends and the history of Amarnathji's discovery, it is today a very important centre of pilgrimage and though the route is as difficult to negotiate as it is exciting, every year, thousands of devotees come to pay homage before Shiva in one of his famous Himalayan abodes.