A Digambar Jain Temple is located near Tower Chowk Deoghar. It is a fascinating temple having idols of 23rd Tirthankar of Jain Bhagwan Parasnath. The carved panels of the temples depict scenes from Jain mythology. It also contains the special sculptors of Rajasthani artists on the coloured glass.
It also contains a rare library with several important scriptures of Jains. A noted social worker and devotee, Tarachand Jain laboured hard to make the temple in the present position. Jainis from India and abroad visit the temple every year.
Deoghar district has around 31 Jain temples , which are located inside the fort of Kanali on the beautiful hills.