The battle of Nadaun was fought between the union of the kings of the hill states and the Mughals. In this battle Guru Ji supported the kings of the hill states with best Sikhs. The only reason behind it was after developing friendly relations with Guru Ji, Bhim Chand and the king of Bilaspur and the king of the other hill states stopped paying annual tribute to the Mughals.
On not receiving any annual tribute Mian Khan sent Alif Khan and the army into battle against Guru Ji and his companions. Alif Khan was defeated after he fled his camp, leaving his belongings and all his warriors.
After the victory of Nadaun, Bhim Chand made an agreement with Alif Khan without the consent of Guru Ji. Guru Ji was deeply hurt by Bhim Chands act of deceit.
Later, Maharaja Ranjit Singh built a gurdwara on the spot where the Guru had pitched his tent. The Gurdwara was affiliated to Shiromani Gurdwara Prabandhak Committee in 1935. It is known as Gurudwara Dasvin Patshahi or Gurdwara Nadaun Sahib.