I have read different stories about this on Quora. Some of my childhood friends would tell some different stories to me about this.
I need to know what it really means and why we worship it?
This is answered in
These chapters convey that in the beginning it was representation of Shiva's Niṣkala (nameless and formless) aspect or his representation as piller/column of fire.
Lord Śiva said:— 45. O gods, O sages, you listen to my words with reverence. If my penis is supported in a vaginal passage there will be happiness.
- Except Pārvatī, no other woman can hold my penis. Held by her my penis will immediately become quiet.
- Śiva became delighted and so also Pārvatī, the mother of the universe. That phallus was held by her in that form then.
So, now, below is the meaning of it
The pedestal shaped as the vagina and the phallus fixed therein are symbolical of the eternal creative forces personified as Śivā [Pārvatī] and Śiva.