This Gurdwara is situated in the West part of town Jaito, which is at a distance of 30 Km from Faridkot City and 17 Km from Kotkapura town on Faridkot - Kotkapura - Mukatsar Road.

When Tenth Sikh Guru, Shri Guru Gobind Singh Ji reached town Jaito, he got his tent pitched up on a small Tibbi (a small hill top). Since water was not available on that Tibbi , Guru Ji came down from the Tibbi in the Evening and reached at this place where a small Pond existed. Guru Ji took rest at this place. A Brahmin happened to pass nearby, who told Guru Ji that he was going on a Pilgrimage to River Ganga. Guru Ji said that a dip in this Pond at Jaito would give similar benefits. Thereafter, Guru Ji showed him River Ganga flowing in this Pond and recovered a Gadva (a small Utensil) of Brahmin from the Pond which had fallen into River Ganga at Haridwar. Hence, the name of the Gurdwara is Gangsar Sahib.

Gurudwara Sri Gangsar Sahib is situated in the Jaito town of district Faridkot. Gurudwara Sahib situated on the Jaito-kotkapura road. Guru Sahib used to stay at place where Gurudwara Sri Tibbi Sahib is situated now. When Guru Sahib asked Bhai kapura for his fort at kotkapura to fight against the mughal army, he refused to support and give his fort. Guru Sahib came here to Jaito. Here Guru Sahib got his tent pitched on Tibbi (a small hil top). There Guru Sahib made Singhs to practice for the arrow shootings. In the evening Guru Sahib came to this place where Gurudwara Sri Gangsar Sahib is situated and took rest. There was water shortage in the malwa area at that time. There was water resourses near (Gurudwara) Tibbi Sahib, but there was little pond near here. Guru Sahib used to go to Gangsar Sahib for any type of water requirement. Guru Sahib showed a brahmin flowing ganga here. Guru Sahib also made an urn appear from the pond which had fallen into the river ganga. From that ownwards this place was known as Sri Gangsar Sahib.