Dera Baba Nanak is situated only 1 km from India-Pakistan border. Dera Baba Nanak, one of the most sacred places of the Sikhs, is situated on the banks of river Ravi. Guru Nanak Dev Ji, the first Sikh Guru, settled near the village Pakhoke, and named it Kartarpur. The Bedis, descendants of Guru Nanak Dev Ji built a new town and named it Dera Baba Nanak after their great ancestor. The town has a number of Sikh Temples. Pilgrims come to this holy town in large numbers. Dera Baba Nanak was made the headquarter of newly created Tehsil of Dera Baba Nanak. Dera Baba Nanak is a historical town and has many lanes and houses that have been preserved since the time of Guru Nanak Dev Ji. From this town pilgrims can see across the border into Pakistan and have darshan of the Gurdwara at Kartarpur.Gurdwara Sri Darbar Sahib was built in commemoration of Sri Guru Nanak Dev. He came here after his first Udasi (tour) on December 1515 AD to meet the members of his family. His wife Mata Sulakhni and his two sons Baba Sri Chand and Baba Lakhmi Chand had come to stay here in their maternal home at Pakho-Ke-Randhawa, near Dera Baba Nanak, where Lala Mool Raj, father–in–law of Guru Nanak Dev Ji was working as Patwari. At that time this village was situated across the river Ravi.