Bindu Sagar Lake alias Bindu Sarovara also known as Ocean Drop Tank is a sacred lake located to the north of the Lingaraj Temple and to the east of the Ananta Vasudeva Temple. Legends says that Bindu Sagar Lake was created by Lord Shiva by bringing water from all the holy places to quench the thirst of Goddess Parvati. Hence it is believed that a dip in the Bindu Sagar Lake would washes away all the sins and the devotees get rid of all their diseases by drinking the holy water. 

Located in a tranquil and peaceful atmosphere and surrounded by numerous temples and shrines, Bindu Sagar Lake lake serves as a popular picnic spot. The 1,300 feet long and 700 feet wide large Bindu Sagar Lake consists of a tiny island with several shrines in its middle. The lake is the venue for conducting the ritual bath of Lord Lingaraj (Lord Shiva), held during the annual Car festival (Ashokastami). On that day, the Shivalingam of the Lingaraja temple will be taken to the Bindu Sagar Lake for the ritual bath.