Chamunda Devi is a Shakti shrine, situated 10 km west of Palampur, on the Baner River. This colorful shrine has a wrathful form of Durga or Chamunda. The idol in the temple is considered so sacred that it is completely hidden beneath a red cloth. Here Lord shiva is present in the form of death, destruction & dead bodies along with Devi Chamunda. In the temple the devotees can see scenes from the Devi Mahatmya, Ramayan and Mahabharata. On either side of the Devi's image is Hanuman and Bhairo.

Devotees offer prayers, worship and give offerings for their ancestors. It is thought to be sacred to take a dip in Ban Ganga and to read and recite the writings of Shat Chandi. In the old days, people used to offer sacrifices also to the deity. The Goddess Chamunda was enshrined as chief Goddess with the title of Rudra in the battle between demon Jalandhra and Lord Shiva which made this place famous as "Rudra Chamunda".