This was the family home of Guru Angad Dev. The Guru settled here when he was married to Mata Khivi and raised their three children here. Guru Angad Dev established this as his religious centre on the advice of Guru Nanak Dev Ji and spent the rest of his life living at Khadur.

Notwithstanding his fall, he succeeded in saving the water filled pitcher. The noise of the fall awakened the weaver who suspected a thief. When weaver's wife heard a voice uttering 'Japji' she remarked that there was no thief but poor, homeless Amar.

When the incident came to the notice of Guru Angad, he was pleased to observe, 'Amar Das was not homeless and lowly.

He shall be the home of the homeless, and honour of the unhonoured, the strength of the strengthless, the support of the unsupported, the shelter of the shelterless, the protector of the unprotected, and the emancipator of the captives.

Guru Angad then formally held the investiture ceremony, chosen Guru Amar Das as his successor and the third Guru. There are two other Gurdwaras namely Thara Sahib and Killa Sahib located. At Khadur Sahib associated with Guru Amar Dasji. Gurudwara Thara Sahib, stands on the spot where Guru Amar Das received tilak (anointment) as Guru from the blessed hands of Baba Budhaji who performed Tilak ceremonies of five Sikh Gurus.

He was also the first head priest of the Golden Temple. Gurudwara Killa Sahib is located where Guru Amar Das used to place his pitcher full of water for a moment's respite, from exhaustion of the long tiring walk.