He also made a pitch, albeit muted, for the Ram Temple and pledged investment to improve the infrastructure of the town.
"Ayodhya mein Shri Ram janmbhoomi ke vivad ka baat-cheet ke madhyam se dono paksh samadhan ka marg nikal sake to sarkar apke saath khadi hai.
If both the sides (Hindus and Muslims) can find a middle path to the Ram Janmabhoomi dispute, the government will support it," Yogi Adityanath said.
Adityanath said many Muslim organsiations favour a Ram temple. "There is scope for dialogue now, the SC has also asked for talks," the UP CM said.
He also pledged Rs 350 crore for the development of Ayodhya. "Poore Ayodhya mein hum LED street lights denge," he said.
Adityanath's visit assumes significance as it comes a day after criminal conspiracy charges were framed against top BJP leaders in the Babri mosque demolition case.
The UP chief minister, who arrived on Wednesday morning, spent around 30 minutes at the makeshift temple in the Ram Janambhoomi-Babri Masjid complex. He later offered payers on the banks of the Saryu River.
Adityanath began his visit by offering prayers at the Hanumangarhi Temple in Ayodhya.
He was accompanied by Dharam Das, against whom conspiracy charges were framed on Tuesday along with the other BJP leaders.
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