
He was struck by the resemblance between Lahirī Mahasaya and Mahavatar Babaji. Īt the 1894 Kumbha Mela in Allahabad, Yukteswar Giri, a disciple of Lahirī Mahasaya, met Mahavatar Babaji. Through discussion with each other, and the fact that some of these encounters included two or more witnesses, they confirmed that the person they saw was the same sadhu that Lahirī Mahasaya called Mahavatar Babaji. Several disciples of Lahiri Mahasaya also reported having met Babaji. There are references to Lahiri Mahasaya in Sampoorna Sripada Vallabha Charitam as guru to Sri Shirdi Saibaba, who initiated him to kriya yoga. Lahirī Mahasaya had many meetings with Mahavatar Babaji, recounted in several books, including Paramahansa Yogananda's Autobiography of a Yogi, Yogiraj Shyama Charan Lahiri Mahasaya (Lahiri's biography), and Purana Purusha: Yogiraj Sri Shama Churn Lahiri, among others.

Lahirī Mahasaya reported that Mahavatar Babaji did not give his name or background, so Lahiri Mahasaya gave him the title "Mahavatar Babaji." Many sadhus in India are called Babaji, and sometimes even "Babaji Maharaj", which has caused confusion between Mahavatar Babaji and other sadhus with similar names. Lahiri Mahasaya wanted to remain with Mahavatar Babaji, who told him instead that he must return to the world to teach Kriya Yoga and that "Kriya Yoga sadhana would spread through the people of the world through his (Lahiri's) presence in the world."

Mahavatar Babaji told Lahiri Mahasaya that he was his guru from the past, then initiated him into Kriya Yoga and instructed Lahiri Mahasaya to initiate others. Following the voice up the mountain, he met a "tall, divinely radiant sadhu." He was amazed to find that the sadhu knew his name. One day while walking in the hills of Dunagiri above Ranikhet, he heard a voice calling his name.

The first reported encounter with Mahavatar Babaji was in 1861, when Shyāmacharan Lahirī (called "Mahāsaya" by disciples, devotees, and admirers) was posted to Ranikhet in his work as an accountant for the British government.
