History of Shyam Sundar goes back to the 15th century, when Shree Chaitanya Mahaprabhu and Shree Nityananda Mahaprabhu practiced Vaishnav cult in Bengal. The then Hindu society were stagnant by the class differences between the Brahmins and other lower casts and they denounced the caste system, which had deep religious and cultural implications in Bengal. Shree Nityananda Mahaprabhu was believed to be the incarnation of Balarama and Shree Chaitanya Mahaprabhu was his eternal brother and friend, Krishna.
It was Shree Nityananda's son, Birbhadra, who started worshiping Shyam Sundar. Later Poteshwari devi (a descendant of the Goswamis) constructed the present day Shyam Sundar Temple about 300 years ago.