When Sri Guru Gobind Singh Ji came to Kurukshetra on the occasion of the solar eclipse fair in 1701-02 from Anandpur Sahib, he camped at the place now occupied by Gurdwara Sri Pata Sahib. During the occasion of the solar eclipse it was, as it still is, the custom to give rich presents as alms to Brahmans during the eclipse, and receive their benediction in the belief that this would relieve the Sun God from the clutches of demons eating him away (as the eclipse was traditionally interpreted). This would earn the donors riches in the afterlife.

Guru Gobind Singh found a novel way of dispelling this falsehood. He loaded a donkey with costly presents and asked the Brahmans to take it as alms. The Brahmans coveted the presents but hesitated to catch the donkey, lest they were polluted by touching the lowly and unholy animal. The sight amused the onlookers who gathered around the Guru. This was what the Guru had desired. He explained to the people the absurdity of relating the eclipses to mythical gods and demons and the futility of giving alms to greedy priests.

The Guru was, however, pleased with Mani Ram, one of the Brahmans, who, undeterred by other priest's threats of excommunication, took hold of the donkey as Guru's grace and asked for his blessings. Guru Gobind Singh gave him a horse, hukamnama and a katar as gifts. Guru Gobind Singh and his family stayed with Mani Ram whose sister served Mata Gujri with great respect. As a result Guru Gobind Singh gave a Panj Granthi Pothi to the family. The hukamnama is still preserved at the Gurdwara.

In most ancient hindu texts, Kurukshetra is not a city but a region ("kshetra" meaning "region" in sanskrit). The boundaries of Kurukshetra correspond roughly to the central and western parts of state of Haryana and southern Punjab.

Before the establishment of a refugee camp named Kurukshetra in 1947, Thanesar was the name of the tehsil headquarters and the town. Thanesar or Sthaneswar is a historical town located adjacent to what is now the newly created Kurukshetra city.

The present town of Thanesar is located on an ancient mound. Thanesar derives its name from the word "Sthaneshwar", which means "Place of God". Local hearsay identifies the legendary 'Kurukshetra' with a place near Thanesar.

Kurukshetra grew so much that on 23rd January 1973, a new district named Kurukshetra district was created, of which Thanesar was the main town. People now tend, mistakenly, to refer to Thanesar town as 'Kurukshetra'.

In 2012, Kurukshetra banned the sale, possession and consumption of meat within the limits of the Municipal Corporation owing to its religious significance.