Temple is dedicated to goddess Kalika. This pretty shrine holds an amazing legend which states that, Kalidasa, the great poet had acquired his literary skills by his sincere devotion to this deity. During 7th century, Harshavardhana renovated the temple. The erstwhile Gwalior rulers rebuilt this holy shrine to its former glory. Excavations held near the temple premises unearthed bricks, a part of the plinth and other sculptures that were belonged to various periods.

The idol in the temple of Gadkalika is supposed to have been worshipped by Kalidasa. It is said that Kalidasa was an uneducated person and it was due to his dedication to Goddess Kalika that he earned her blessings and also acquired unparalleled literary skills.