The Sankat Mochan Temple in Varanasi was built in the mid-17th century by Goswami Tulsi Das Ji who wrote the Ramcharitra Manas.

It is believed that Goswami Tulsi Das Ji got inspiration from Sankat Mochan Temple to write and compose the Ramayan.
It is believed that Tulsi Das Ji with his deep bhakti and devotion had invoked Sankat Mochan Hanuman to come in his presence where he with his own hands had done the Pratishta of the Sankat Mochan Swaroop in the temple. Initially, the Sankat Mochan Temple form was very small, but in the year 1900, Pt. Mahamana Madan Mohan Malviya Ji got the temple re-constructed systematically, and since then till now devotees from across the globe have been coming here to pay their respects.

The episode of the divine meeting of Goswami Tulsi Das Ji and Hanuman Ji :
During his stay in Kashi one day while pouring water Tulsidas Ji found a ghost on the tree, which asked him- 'Do you want to meet Shri Ram?
To which he got surprised and asked - 'How can you make me meet Shri Ram?' The ghost told him that for you to meet Shri Ram you should meet Hanuman first.
After telling this Ghost started to move into a dense forest, and Tulsidas immediately followed him. It is said that as soon as Tulsidas went to follow him he went to the Assi area which then was known as Anand Van (Forest of Joy).

On reaching the dense part of the jungle Tulsi Das Ji started getting worried. In such a situation, he held his feet and said you are only Hanuman, please give me your divine darshan.
After this, Sankat Mochan Swaroop of Hanuman Jii appeared in front of him, and on his request, the place where this episode took place is today known as Sankat Mochan
Temple.