The shrine was originally established as a simple grave next to the mosque which Hujwiri had built on the outskirts of Lahore in the 11th century.[1] By the 13th century, the belief that the spiritual powers of great Sufi saints were attached to their burial sites was widespread in the Muslim world,[3] and so a larger shrine was built to commemorate the burial site of Hujwiri during the Mughal period.[1] The shrine complex was expanded in the 19th century, and Hujwiri's mosque rebuilt.
The shrine came under Pakistani government control as part of the Auquf Ordinance of 1960, with the official aim of preventing shrine caretakers throughout the country from financially exploiting devotees. The shrine was greatly expanded in the 1980's under the rule of military dictator Zia ul-Haq,[1] during which time the shrine became the largest in South Asia.[1] Offices for NGOs, a library, madrasa, police station, carpark, and offices were all added under his regime.[1] Designated spaces for musical performances, and new free kitchen were also added during that time.[1] New markets have emerged around the site since its massive expansion.
Since 1965, the mehfil-e-sama, a 2 day qawwali music festival, had been held adjacent to the shrine, which in 1992 shifted to a nearby school.[4] On 1 July 2010, two suicide bombers attacked the shrine. At least 50 people were killed, and 200 others were hurt in the 
It was built to house the remains of the Muslim mystic, Abul Hassan Ali Hujwiri, commonly known as Data Ganj Baksh, who is believed to have lived on the site in the 11th century CE. The site is considered to be the most sacred place in Lahore, and attracts up to one million visitors to its annual urs festival.