The Masand System played an important role in the development and organisation of the Sikh religion. The importance of the Masand System for Sikh religion was as under:

1. The system ensured regular and fixed donations for the Guru Gaddi. With a fixed income from donations, Guru Sahib was able to undertake much constructive work for the development of Sikh religion. Guru Arjan Dev Ji not only built tanks at Amritsar and Santokhsar, but also built new cities, constructed ponds, dug wells, etc.

2. Masand System, not only ensured fixed donations, but also, helped in spreading the message of Sikh religion more enthusiastically. Earlier, the work of spread of religion was done through Manji system. It was confined only to the Punjab during those days. However, Guru Arjan Dev Ji appointed Masands even outside Punjab. It helped in the spread of Sikh religion even outside.

3. Guru Sahib started holding his own court when he had an assured income through Masand System. The Masands and the devoted Sikhs brought donations and gifts to the court of Guru Arjan Dev Ji on every Baisakhi day and bowed their heads before him to seek his blessings. Gradually, the court of Guru Sahib acquired the status of a court of an emperor for the Sikhs and Sikh Sangat started calling Guru Arjan Dev Ji as Sachcha Padshah (The True Emperor) out of love and devotion for him.