It is one of the proto-historic sites that has been discovered. By about 1000 BC chalcolithic people had settled on the north bank of the Dwarakeswar. After the early historic period nothing noticeable has been discovered at Dihar till Saivite activity around 14th century AD.
The remains of Sareswar and Saileswar Shiva temples are major attractions at Dihar. King Prithvimalla of the Malla dynasty built the temples in 1346. The laterite stone walls of the temple have floral designs and miniature human figures. Defaced images of divinity can also be seen. Pilgrims gather in the area during Shivratri.