The Grishneshwar temple or the Shivalaya, destroyed during the invasions of the Delhi Sultanate in the 14th century, was reconstructed in red stone by Malojiraje Bhonsle (grandfather of the great Maratha ruler Chattrapati Shivaji Maharaj). In the last decade of the 18th century, it was renovated under the patronage of Queen Ahliyabai Holkar of Maheshwar (near Indore) who designed a stepwell known as Shivalaya Teerth (or Kund) nearby the temple building.

One of the 12 Jyotirlingas of Lord Shiva, the temple is beautified with a shikhara in the Nagara style of architecture. The pillars of the mandapa have sculptures carved upon them , each depicting scenes from the epics of Ramayana and the Mahabharata. Close to this in Verul (Ellora) itself is the Maloji Raje Bhosle Gadi and the Shahaji Raje Bhosle memorial, where once upon a time, Maloji Raje resided. The Gadi (fortress) renders the strong ancestral connection Chhatrapati Shivaji Maharaja had with Ellora and is open for visitors.