There is a typical folk tale on Dhaulinag Utsav. It is said that when Dhaulinag came to this area of Bageshwar, he called the Kandpals of Kanda. However, they did not hear the call as they were in a deep sleep. Then he called the Dhapolas of Dhapolasaras, the Dhapolas further called the Chandolas of Pokhari, and the Chandols arrived with the Churmals. Bhopal, Chandol, and Churmal appeared before Dhaulinag to serve him. Dhaulinag was extremely pleased to see the tribes coming together for his service, and he blessed them and took them under his protection. Since then, Dhaulinag has been worshiped as the ‘Ishtadevata’ (personally favorite deity) here, and Dhaulingotsav is held with great enthusiasm in the months of Bhadrapada and Ashwin Panchami. People from nearby villages and far-flung areas come together to celebrate the fair. In the regular calendar, it falls in the month of August/September. Chipola people of Dhapolsera, on the night of Ashwin Shukla Panchami, observe this festival.
The needles (leaves) of the pine tree make 22 cubits (hands) long flaming torches. They assemble with the forgotten people and bring the torch together on their shoulders to the Dhaulinag temple. Devotees welcome Nag Devta with drums and songs on the lawns of the temple premises. After the reception, the burning torch is lit and brought to life. People walk around the temple and offer prayers throughout the time, carrying a burning torch. It is mandatory to be present in the worship ceremony along with the Pants of Dhapola, Kandpal of Kanda, Chandol of Pokhari, and Bhools of Madgopeshwar, among others. The worship ceremony is considered incomplete even without one of the tribes, as mentioned above. The attendants of the temple and worship ceremonies are the Dhamaud or Dhami people of the Dhupri region. The priests belong to the Pant tribe of Khantoli village.