It was reconstructed by the Pallavas in the 8th century and again in the French rule.
The important figure of the Mangani festival, Lord Bikshatanamurthy is of the Kailasanathar Temple.
Also Lord Shiva has given the position to Ammaiyar to seat below his foot in Nataraja position which is given this position to only to Karaikal Ammaiyar punithavathi The temple tank Chandra Theertham is associated with the main three temples of Karaikal.
The Float festivals (தெப்பத்திருவிழா) in Karaikal with the idols of Lord Kailasanathar from this temple and Lord Nithyakalyana Perumal from the perumal temple is an important festival celebrated here.
The idol of Lord Kailasanathar is taken in the chariot through the important streets of Karaikal.