The history of the Mahabali Temple is intertwined with the history of the Kangla Fort, which served as the ancient capital of the Manipur kingdom. While the exact date of the temple's construction is not definitively known, it is believed to have been established during the reign of King Gambhir Singh in the early 19th century. The temple gained prominence as a place of worship for the royal family and the local community. Over the years, the temple has undergone renovations and expansions, preserving its religious significance and cultural heritage. Its location within the Kangla Fort underscores its historical importance, as the fort witnessed numerous significant events in Manipur's history.