An important event in Sikh history is attached with Baba Bakala. "Baba Bakala" were the last words uttered by Guru Hargobind Singh Ji before his death at Delhi on March 30, 1664. The words had a meaning attached to them. The words referred to the next successor of the Sikh Gurus being in Bakala (Amritsar).

Many men claimed to be the next Guru and it created confusion and curiosity among the people. Every thing happens by God's grace. May be it was God's planning regarding the revelation of the next Guru, Makhan Shah's ship was caught in a furious storm. In the danger, man prays to God…Makhan also prayed to God to help him in his sore need and vowed to donate five hundred Dinars to the Guru for charitable purposes.

His ship was safely steered through the storm and he thanked God for saving his life and goods. Then he went to Bakala to fulfill his vow. He offered two Dinars to every person who posed them to be the next Guru. True Guru would ask for the exact amount, he thought. As it was expected no one recognized the true amount. He heard about Tegh Bahadur, the son of Guru Hargobind Singh Ji.

He went to him and offered two Dinars to him. Guru Ji said: Why only two Dinars after pledging for Five? … The Guru is never in need of anything but a Sikh is expected to keep his pledge to the Guru. Makhan Shah told Guru Ji that he would tell everyone of his discovery. Baba Bakala became a place of pilgrimage. A splendid Gurudwara stands at a place where Guruji used to meduitate.