The Laxmi Narayan Temple is situated on the north side of the palace, at Chamba. There are a group of six stone Sikhara temples arranged in a row from north to south. Three of these temples are dedicated to Lord Vishnu and the other three to Lord Shiva. The northern most is that of Lakshmi-Narayan, the principal temple of Chamba.

It is belived that the slab from which the image of Lord Vishnu was carved was brought with great difficulty by king Sahilvarmans, eldest son Yugkara.