Built in the 10th century, this small elegant temple has been described as the most exquisitely ornamented temple in Bhubaneswar.It has an 11m (35 feet) high tower. The sandstone carvings are the most notable feature of this temple. It is also known for its ornamental gateway, carved dwarves, and intricate motif carvings of a smiling lion, adorned with beaded tassels in its mouth. Every inch of space on the outer surface has been generously decorated.

The jagamohana has stunningly beautiful lattice windows on the outside and a richly sculptured interior, lavishly embellished with floral motifs, and other figures. Over the doorway to the inner sanctum the architrave is relieved with the icons of the navagrahas, the nine planets with Ketu, the ninth planet appearing in form of a canopied three-headed snake. But in this temple the sculptured images of the deities appear without haloes behind their heads, which is rather peculiar and is obviously a deviation from the traditional mode of presenting the deities. Muktesvara means the lord who bestows freedom through yoga. The Siddeswara Temple is on the same grounds and has a Ganesh deity.

The outer walls are thickly embroidered with the figures of ascetics in meditational poses or with illustrations of tales from the Panchatantra. The niches are filled with the finely filigreed icons of many gods and goddesses mentioned in the pantheon of Hindu gods. Some of the figures on the outer walls of the temple suggest their association with both Buddhism and Jainism. They thus testify to the spiritual synthesis and religious harmony that characterized the Odishan culture. The small Marichi kund. Between the Muktesvara Temple and the road, is known to cure infertility in women. It is a pleasant place to sit for a while.