Amritsar was found by Sri Guru Ramdass, the fourth guru of the Sikhs in about 1574 A.D. Before the city was founded, the area was covered with thick forests and had several lakes. To start the city the Guru invited 52 traders from different sectors belongings to nearby places like Patti and Kasur to settle here. These families started the first 32 shops in the city which still stand in the street called Batisi Hatta (32 shops). The Guru himself shifted to live among them in the city which came to be called Ramdaspur and has been eulogised in the Guru Granth Sahib.
The construction of Amrit Sarovar from which the city gets its present name was also stared by Sri Guru Ramdass. His successor, Sri Guru Arjan Dev, completed the project and located the Harmandir Sahib in its midst. Later, when Guru Arjan Dev completed the writing of Holy Granth sahib, a copy of Guru Granth Sahib was ceremonially installed in Harmandir Sahib. Baba Buddha Sahib was appointed the First Granthi.