[1][2] It was built around the mid 11th-century during the rule of the Kunduru Chodas (a branch of Telugu Cholas), supported and embellished further by later Hindu dynasties of Telangana.

The pillars in the Ardhamandapa and open spaces near the central Shiva shrine were designed and placed by the temple architect in such a way as to cast a unified shadow (Chaya in Telugu) constantly on the lingam all through the day, irrespective of the position of the sun.

It is located to the east of the village in the midst of paddy fields near the 11th-century manmade water reservoir called the Udayasamudram.

The earliest records mention it as one of the regional capitals of the Kadumba dynasty, from where governors and kings of Andhradesa ruled this part of Dakshina-kshetra (Deccan-region).

[3] With Kirtivarman's conquest, the Chalukyas gained and nurtured Panagal, building some smaller temples in the Chalukyan style.

In 1124 CE, Udayaraju of a branch of the Telugu Chola dynasty constructed a large water tank to the northeast of the town.

The Chaya Someswara temple is actually a complex of shrines within a prakara (compound) wall built from large blocks of stone.

Each cube has a nominal adhisthana of the manchabandha class, while on top of the vimana is the Dravida-ghanta, a feature so named in the Aparajitaprccha, an Indian Vastu Sastra text.

These evidence experimentation and innovations by Indian shilpins (artisans and architects) in the evolving Telingana architecture by the 11th century.

[10] The ceiling blocks are carved, with the central section featuring ashta-dikpala and Natesa (dancing Shiva) in the center.

The Chaya Someswara temple illustrates the square principle of Hindu architecture, in nearly every section, from its sanctums to mukhamandapa, rangamadapa, antarala, and in the vimana superstructure.