Constructed in the Cholan style of architecture, the temple is glorified in the Naalayira Divya Prabandham, the early medieval Tamil canon of the Alvar saints from the 6th–9th centuries CE.

The temple is believed to have been built during the late 8th century CE, with later contributions from Medieval Cholas, later Pandyas, Madurai Nayak kings, Sethupathi Palayam of Ramnad.

As per Hindu legend, Rama is believed to have done penance to worship the god of ocean to seek way to Lanka in grass, giving the name Dharbasayanam to the place.

The temple is maintained and administered by the Ramanathapuram Samasthan Devasthanam a Trust under the control of the Ramnad Palayam Sethupathi successor and at present Her Highness the Raja Rajeswari Natchiyar as Hereditary Trustee and the accounts were audited by Hindu Religious and Charitable Endowments Department of the Government of Tamil Nadu.

The Chola king Parantaka I named himself "Sangrama Raghava" after his conquest of Sri Lanka, while his son Aditya I was called Kothandarama.

[1] A mutilated inscription in the temple made during the 37th year of Maravarman Sundara Pandyan in 1305 records order of a minister by name Arya Chakravarthi.

Historians believe some portions of the temple tower might also have been built by Jaffna kings, who were friends of Pandya Empire and also rulers of Rameswaram.

Each ritual has three steps: alangaram (decoration), neivethanam (food offering) and deepa aradanai (waving of lamps) for both Adi Jagannatha and Padmasini.

The two major festivals celebrated in the temple are the Panguni Brahmotsavam for Adi Jagannathar and Rama Navami Utsavam during the Tamil month of Chittirai.