Guru Arjan Dev was the youngest son of Guru Ram Das and Mata Bhani. He was born at Goindwal on April 15, 1563. In 1579 Guru Arjan was eventually married to Ganga Devi daughter of Krishan Chand in 1579.

Eventually Arjan Dev was invested with the Guruship by his father Guru Ram Das in 1581 as narrated previously. Guru Arjan now left Goindwal for Ramdaspur (Amritsar) to complete the work started there by his father and to get away from his jealous older brother Prithi Chand. Guru Arjan Dev completed the two tanks of Santoksar and Amritsar and undertook the expansion of Ramdaspur.

The Guru laid the foundation of the Harmandir Sahib (Golden Temple) in the middle of the tank of Amritsar. All of the Sikhs desired that it should be the tallest building in the new town. Guru Arjan Dev however felt otherwise. He reminded his followers that humility should be a great virtue. The temple was therefore built on as low an elevation as possible. To counter the Muslim belief that God's House is in the west and the Hindu belief that it is in the east where the sun rises, the Harmandir Sahib had entrances on all four sides. Guru Arjan Dev exclaimed; "My faith is for the people of all castes and all creeds from whichever direction they come and to whichever direction they bow." To help raise money for these monumental public works projects, the Guru declared that all Sikhs should donate 1/10th of their earnings to charity.

Around the year 1590 Guru Arjan Dev decided to go on an extensive tour of Punjab accompanied by such trusted Sikhs as Bhai Gurdas and Bidhi Chand. He visited Khadur, Goindwal, Sarhali, Bhaini, Khanpur, Taran Taran, Lahore, Dera Baba Nanak, as well as Barath where he met the aged ascetic son of Guru Nanak, Baba Sri Chand. Guru Arjan Dev also purchased some land near Jullundur and laid the foundations of a new township called Kartarpur as well as digging a well called Ganga Sagar.

The Guru eventually returned to Amritsar to find his eldest brother Prithi Chand jealous as ever. With the Guru having no children as yet, Prithi Chand hoped that his own son Mehrban would be able to succeed Guru Arjan Dev as the next Guru. Guru Arjan in his humility asked his wife Ganga Devi; "If you need a boon, ask not me but a pious Sikh like Baba Buddha, the aged seer and devout disciple of Guru Nanak". She proceeded with a large entourage and much fanfare to Baba Buddha who lived in a jungle near Amritsar. There she presented him with many delicacies to eat. Baba Buddha resented this and refused to provide any blessings. Upon hearing what happened, Guru Arjan Dev told his wife to return this time on foot, with a simple meal prepared by herself. This time Baba Buddha was delighted and partook of the simple food. He prophesied; "A son will be born to thee who will crush the enemies of Nanak's house, just as I have crushed this piece of onion with my hand."