Situated on a hillock near Nilagiri, Panchalingeswar is a place with beautiful surroundings and serves as a picnic spot for the visitors. Panchalingeswar has derived its name from the five lingas (Phallus) whom the legends describe as the Creator and Destroyer of the Universe.

It is a scenic place on the lap of Nilgiri Hills with a perennial stream flowing over the five lingams (The king of Balasore Banasura installed the five lingams) making the place the abode of Lord Shiva.It is, one of the famous holy place of worship in Balasore. The temple of lord Shiva is situated on the top of the hill.