Kalady came to prominence only after its rediscovery in the late 19th century by Sri Sacchidananda Shivabhinava Narasimha Bharati, the Shankaracharya of Sringeri and the subsequent consecration of an Adi Shankara temple in 1910.

The centenary of Kalady was celebrated in May 2010, and the story of its re-discovery a hundred years ago has been documented in a film by the Sringeri Sharada Peetham.

Kalady is believed to have been found by a chieftain named Rajasekara, whose dream was influenced by Hindu god Shiva.

A 45 m (148 ft) tall Adi Sankara Kirti Stamba Mandapa was built by Kanchi Mutt under the aegis of its pontiff Chandrasekarendra Saraswati.

[5] The Shankara Shrine in Kalady, run by the Sringeri Mutt, is a large, partly open structure situated on the northern bank of the river Periyar.

There are two major shrines in the temple; one is dedicated to Shankara and the other to Goddess Saradamba, the main deity of Sringeri.

Sri Adi Sankara Keerthi Sthamba Mandapam is an eight-story memorial built by Kanchi Kamakoti Math.

It also depicts the Ṣanmatam promulgated by Śankarachārya comprising Śaivam, Vaiśnavam, Śāktam, Gānapatyam, Souram and Kaumāram.

Sree Sankara during pendency of upanayanam went begging for alms around and reached door steps of a poor widowed lady who had nothing but a dried amla to offer.

Moved by the condition of that lady and her broad mind to offer whatever is available to bala Bhikshu, Sankara instantly recited Kanakadhara stotram.

The ancestral deity temple of Sree Sankaracharya long back has started a Yagna during Sankara Jayanti season chanting Kanakadhara stotram by 32 Brahmins representing 32 years of life of that great guru.

Sivasarman Nambudiri, Shankaracharya's father, was the priest of Karpillykavu Shiva temple, just 8 km south at Manjapra.

It was noticing the daily lamp Nadukaveri Sreenivasa Sastrikal, special envoy of Sringeri Math, identified and accepted Kalady as Shankaracharya's birthplace in 1905.

The Raja of Travancore acquired the whole area from Kappilly Mana in 1905 and handed it over to the Sringeri Math which now maintains the Mandap.

It was also the place where Shankara had first performed Aaraattu (a river bath of an idol) for his ancestral deity before installing it at its current location.

One distinct activity, the Aaraatu of Lord Krishna (the river bath), has been taking place for centuries in the holy ghat where Kalady was born.

Every year during the Ṣankara Jayanti time (April–May), Kanakadhāra Yajñam is also being conducted with great participation of people even from far distance.