The temple was originally near the sea shore, believed to be built by Pallavas. Latter the temple was expanded by Vikrama Chozha King during 1118 to 1125 AD ( to be verified ..). As per temple authorities, during 14th century the Vijayanagara King Parankusa, built this temple at the centre of the Village with mada street around the temple. Moolavar was installed in presence of Pillailogam Jeeyar as per Srivaikanasa agama, on a Chithra month Visaka nakshatra day.
As per the P V Kalathur Sri Lakshmi Narasimhar Temple's sthala purana, The Utsavar Lakshmi Narasimhar was shifted to PV Kalathur near Chengalpattu to save from sea flood / Tsunami / Portuguese rule.
One of the inscription at Kunnathur, records the gift of that Village to this Temple. On the corner of the Kunnathur Sri Lakshmi Narayana Temple tank a land gift donation stone is installed. The inscriptions ( SII 26 – 270 ), belongs to Virapratapa Srirangadeva Maharaya’s saka year 1501 ( 1579 CE ) reign year. As per the inscription the king was ruling from Vijayanagaram.
It records the grant of this Kunrathur Village to Talasayanaperumal Temple of Thirukadalmallai, for worship, offerings, festival, rearing gardens, and for other services like, sahasranama Archana. As per the inscription this Village is situated in Perumbukka Sirmai in Tirukkalukkunrapparru in Mugandur nadu in Amur kottam, in Padaividurajya in Gangaikonda Solamandala. This gift was made by the merit of Venkatapatideva Maharaja, the brother of the king, by the former’s agent Goppa(na) Dalavay Tirumalai Nayakkar.
It is believed that this is the birth place for Boothathazhlvar, who was found out in the temple tank. Lord Maha Vishnu gave darshan to Pundarika Maharishi.
Pundarika Maharishi, day and night drained the water of the tank to pluck the lotus flower, to submit the lotus feet of Maha Vishnu, at Thiruparkadal. Appreciating Pundarika Maharishi's bhakthi, came in the form of an old man and said that he will the do that job if he is offered food. So Pundarika maharishi went inside the Village to get food. When Pundarika Maharishi, returned with food, Sriman Narayanan, gave darshan reclining on the floor. Hence Lord Maha Vishnu is called as Sthala Sayana Perumal.