The demon Khara, on receiving the Shaiva Vidya Upadesha, (the knowledge of Shaivisim) from Malyavan went to the holy city of Chidambaram in present-day Tamil Nadu and did severe penances and meditation for the attainment of Moksha or liberation. Pleased with his penance, Shiva appeared and granted all the boons he asked, and presented him with three great lingams, drawn out of Him. Assuring that He will ever be present in them, Shiva asked Khara to worship the Lingas to attain salvation and disappeared. When Khara was returning south from the Himalayas with the three lingams, one in his right hand, one in his left hand and other by the neck, he felt tired and rested awhile. After rest when he tried to pick up the lingas, they wouldn't budge. He realized that it was Shiva's magic (maya) and when called unto, the heavens spoke thus, "I shall remain here giving Moksha (salvation) to whoever takes refuge in Me!". Khara, having attained liberation, entrusted the lingams to the custody of the sage Vyaghrapada who had followed him invisibly and asked the sage to protect and worship them.
The Banyan tree inside the temple
On the day of Vrichika Ashtami (According to Malayalam calendar), Shiva and his consort Parvati appeared before Vyaghrapada. The Lord proclaimed, "This place shall be known as Vyaghrapadapurma", and disappeared. The world-famous Vaikkathashtami festival and all connected holy festivals are observed here even to this day on the same Vrichika Ashtami.
The temple of Sri Kochalumchuvdu Bhagavathy Amman, who is cosidered as a form of Kali and the consort of Vaikathappan.
Vyaghrapada continued the puja with full devotion for some time and went on a pilgrimage. Months and years passed. Parashurama had passed by the place one day. Seeing good omens, he alighted and saw a lingam submerged in water emitting heavenly rays. He could understand that it was the lingam placed by Khara. Parashurama thought to himself that, Vyaghrapadapurma, the holiest place on Earth, could be a great refuge for the devoted who wish to attain liberation. He consecrated the lingam here with his earnest prayers and recited holy mantras.
Pleased with his devotion, Shiva appeared with his consort Parvati before Parashurama. He was so pleased to see that the lingam was consecrated with the customs and rites by Parashurama, his greatest devotee.
Full of joy and gratitude, Parashurama performed puja there for some days. Then he built a temple here and entrusted a noble Brahmin man from the Taruna village. He taught the brahmin, the holy chants, mantras, procedures and shlokas necessary to perform puja to Shiva and initiated him as the chief priest of the temple. Parashurama donated the whole temple to the brahmin and disappeared. It is the belief that the temple and its connected customs and rites are planned and fixed by Parashurama himself.
It is believed that Shiva, also known here as Vyaghralayesha (the lord of Vyaghrapadapurma), gives His blessings to the devotees in three incarnations or avatars, in the morning as Dakshinamurthi, in the afternoon as Kiratamurthi, and as Shakti Panchakshari in the evening.