Carrying some handfuls of parched rice as a gift, Sudama visits his old friend at Dvaraka, who receives him with honour.

After discerning Sudama's unrevealed poverty, Krishna creates various luxurious palaces for his friend where his hut had stood, which the former sees when he returns home.

[4] In one iteration of his legend, Sudama, along with Tulasi, are stated to have once resided in Krishna's own abode, Goloka, before a curse by Radha forced them to be born on earth.

However, upon reaching adulthood, while Krishna became the ruler of Dvaraka, and became reputed for his deeds, Sudama remained a humble and impoverished villager.

The Bhagavata Purana narrates that eventually, Sudama's starving wife implored her husband to visit Krishna and tell him of his impoverishment, stating that as the refuge of his devotees and a patron of Brahmins, he would no doubt shower his old friend with great wealth.

Krishna recounted an incident when the duo were once tasked with bringing fuel from the forest during a great storm, wandering aimlessly as they held each other's hands, until their preceptor found them.

After spending the night in the palace, the Brahmin begun his journey back home, feeling small because he had been ashamed to ask for anything, but also content because he had obtained a darshana of the deity.

Sudama returned to find that his humble hut had been transformed into several seven-storied palaces, filled with beautiful gardens and parks.