Short walk from the Yunokawa stop. Legend has it that the 9th lord of the Matsumae domain, whose childhood name was Senkatsumaru, was cured of a serious illness by the hot spring on the shrine grounds. There is also a monument below the shrine grounds marking the birthplace of Yunokawa Onsen.

Yugura Shrine is located near the Yunokawa streetcar stop, the last stop on the streetcar line. It is said to be the birthplace of Yunokawa Onsen, and there is a "Hakodate Yunokawa Onsen Birthplace Monument" under the shrine grounds. It is widely known as the guardian deity of Yunokawa Onsen.

It is said that the origin of the Yakushi Nyorai was discovered by a woodcutter around 1453 during the Muromachi period (1336-1573), who later carved a statue of Yakushi Nyorai and enshrined it in a hall to thank the woodcutter for curing his illness through a hot spring cure. It is also said that Takahiro (childhood name: Senshomaru), later the 9th lord of the Matsumae domain, became seriously ill in 1653 and was cured of his incurable illness after taking a bath here at the suggestion of his mother, Seiryouin, in a dream. Seiryo-in remodeled the shrine building and enshrined a statue of Yakushi Nyorai and dedicated a crocodile clip (a large disk-shaped bell). The crocodile mouth still remains as a shrine treasure.

The deities of Yugura Shrine are "Ohonamuchi no Mikoto" and "Sunahikona no Kami. Together, they are said to have cooperated in building the nation of Japan and managing the land, and to have prescribed remedies for illnesses for people and livestock. The deity is especially known for its divine virtues regarding health, longevity, conjugal harmony, and easy childbirth, and is also known as the god of a good harvest, prosperous business, matchmaking, and child-rearing.