The temple is believed to have been built during 15th century CE by the local ruler Chembakasserry Pooradam Thirunal-Devanarayanan Thampuran.

The idol at Ambalappuzha is likened to Parthasarthi form of Vishnu, holding a whip in his right hand and a conch in his left.

According to the legend, Krishna once appeared in the form of a sage in the court of the king who ruled the region and challenged him for a game of chess (or chaturanga).

As he started adding grains of rice to the chess board, the king soon realised the true nature of the sage's demands.

The king would serve paal-payasam (pudding made of rice) in the temple freely to the pilgrims every day until the debt was paid off.