The history of Jagannath Dighi is intertwined with the local royal family and the Jagannath temple located nearby. Legend has it that the lake was excavated during the reign of a local king, possibly to provide a water source and enhance the beauty of the area surrounding the temple. Over the years, the dighi has become an integral part of the cultural and social life of Dharmanagar. It has served as a gathering place for religious ceremonies, festivals, and community events. While precise historical records are scarce, oral traditions and local accounts suggest that the dighi has been a cherished landmark for centuries, witnessing the evolution of the town and its people. Today, it stands as a testament to the region's rich heritage and a symbol of community bonding.