The Siddhivinayak temple was constructed by Laxman Vithu and opened to the public on 19 November 1801. It was built with the funding provided by a wealthy woman, Deubai Patil. As she was childless herself, she empathized with the plight of other women in similar situations. With the belief that Lord Ganesha would listen to the prayers of such women and bless them with children, she built this temple. Another legend is associated with this temple. Akkalkot Swami Samarth, a Hindu Guru, instructed one of his followers, Ramakrishna Jambhekar Maharaj, to bury two divine idols in this temple in front of the presiding deity. As prophesied by Swami Samarth, a Mandar tree grew exactly at that spot 21 years later. The tree had a "swayambhu" (self-originated) Ganesha in its branches. This tree still stands inside the temple premises.

The Siddhivinayak Temple was constructed on 19th November 1801. The original structure was a small square brick building, measuring 3.6 meters by 3.6 meters, with a dome-shaped brick shikhara. The temple was built by the contractor Laxman Vithu Patil and was funded by a rich Agri woman named Deubai Patil. Deubai, who was childless due to infertility, built the temple with the hope that Lord Ganesha would bless other infertile women with children. Ramakrishna Jambhekar Maharaj, a disciple of the Hindu saint Akkalkot Swami Samarth, buried two divine idols in front of the presiding deity of the temple on the orders of his guru. It is said that after 21 years of the burial of the icons, a mandar tree grew at that spot with a svayambhu Ganesha in its branches, fulfilling the prophecy of Swami Samartha. In the 1950s and 60s, the temple gained popularity, and a significant number of devotees began visiting. However, during the same period, the owner of the plot sold some of the temple land, reducing the complex area. After 1975, the number of devotees increased dramatically. The present temple was built in the late 18th century by Ahilyabai Holkar, the philosopher queen of Indore, who built and renovated many Hindu temples.