Grishneshwar Temple, located in the village of Verul near Ellora caves at a distance of 30kms away from Aurangabad, is one of the 12 Jyotirlinga shrines dedicated to Lord Shiva (Gharishneshwar). The presiding deity is in the form of jyotirlinga and known by several names like Kusumeswarar, Ghushmeswara, Grushmeswara and Grishneswara. The temple was constructed in the 18th century by Rani Ahilyabhai Holkar, a Maratha princess who ruled Indore from 1765 to 1795. This 240 x 185 feet tall cubicle shaped shrine, built of red volcanic rock is a fine example of medieval architecture with beautiful carvings, attractive friezes and sculptures of Indian Gods and Goddess. Grishneshwar temple is noted for its 5 tier shikara and carvings on the pillar. A golden spire or a kalasham tops the temple. Another specialty is the holy water, which flows from inside the temple. Shivratri is celebrated as the annual temple festival in the month of March and a fair named 'Ellora Yatra' is also held as a part of the festival.

There is an interesting legend attached to the existence of the jyotirlinga in the temple. In the Devagiri mountain, there lived a Brahmin couple named Brahmavetta Sudharm and Sudeha. They had no children and according to the wish of Sudeha, Brahmavetta married her sister Ghushma. On the advice of Sudeha, Ghushma used to make 101 lingas, worship them and discharge them in the near by lake. With the blessing of Lord Shiva, she gave birth to a son. Out of jealously, on night Sudeha killed the baby and threw him in the lake where Ghushma used to discharge the linkas. The aggrieved Ghushma, after realizing her son's death continued her ritual worship and when she immersed the Shivalingam in the tank, her son was miraculously returned to life. At that time Lord Shiva appeared before her and reveal everything. Ghushma asked Shiva to forgive Sudeha and as a boon she requested the lord to reside there for the benefit of the people. Upon her request, Lord Shiva manifested himself in the form of a Jyotirlinga and assumed the name Ghushmeshwar and the lake was named as Shivalaya thereafter.