Guru Gobind Rai became interested in the mastery of physical skills and literary accomplishment. He himself was an excellent poet and wrote many compositions in different languages. He continued to engage in the concerns of the community.
On the 13th April 1699, Guru Gobind Rai organized a gathering for all Sikh’s at Anandpur. Sikh’s came from far and wide to attend the Guru’s sermon. A large tent was erected at the front and the Guru appeared before the assembly dramatically with a naked sword in hand. He addressed his audience and asked "Is there present a true Sikh who would offer his head to the Guru as a sacrifice?" The audience looked on in awed silence. The Guru asked again "Is there present a true Sikh who would offer his head to the Guru as a sacrifice?" At the third call a Sobti Khatri of Lahore, Daya Ram arose from his seat and followed the Guru into the tent. There was a slashing sound, then a soft thump. The Guru returned from the tent, still holding the sword which was now dripping with blood. The Guru called out again "Is there present a true Sikh who would offer his head to the Guru as a sacrifice?" Some people fled, they thought that the Guru was mad. But there he was, sword in hand. The Guru asked another time. This time a Jat from Hastinapur, Dharam Das came forward. He was lead into the tent and was greeted with a slashing sound and a soft thump. The Guru made three more calls to the assembly. Muhkam Chand, a washer man from Dvarka, Himmat, a water-carrier from Jagannath puri, and Sahib Chand, a barber from Bidar (Karnataka) responded one after another and advanced to offer their heads. As the last Sikh was taken into the enclosure, the Guru took a little more time in there. The Guru emerged from the tent and was followed by the five Sikh’s who were “beheaded”. They were dressed alike in saffron coloured raiment topped over with neatly tied turbans with kirpans (swords) dangling by their sides. Guru Gobind Rai then introduced Khande Da Pahul, sweetened water churned with a Khanda (double edged sword). Those Five Sikh’s were the first to be initiated into the KHALSA. The Guru then named them the Panj Piare or the Five Beloved Ones. He then changed their last names to Singh, which means lion, to form the casteless brotherhood of the Khalsa. All who have taken Amrit, the sweetened water, are baptised and are required to wear the five symbols of the Khalsa, which are
-Kesh, uncut hair or beard
-Kanga, a comb in the kesh to keep it tidy
-Kara, a steel braclet
-Kaccha, short breeches
-Kirpan, a sword
All Amrit-Dharis (Baptised Sikh’s) are to uphold the Rahit (Sikh code of ethics and rituals) and to help the community. After initiation the new Khalsa members adopt the last name of ‘Singh’ (lion) if a man, and ‘Kaur’ (princess) if a woman. They must only follow Sikhism, worship every day and follow the Guru’s teachings.
After the Panj Piare had taken Amrit the Guru himself received initiatory rite from the Panj Piare. Guru Gobind Rai had his name changed to Guru Gobind Singh. The Khalsa members are described as saint-soldiers, this is because they lead a peaceful life but are ready to fight against injustice.