The temple is dedicated to the Hindu goddess Shakti / Parvati in the form of Mangaladevi, the presiding deity from whom the city derives its name.

The temple is of significant antiquity and is believed to have been built during the 9th century by Kundavarman, the most noted king of the Alupa dynasty, under the patronage of Matsyendranath.

As per another legend, the temple is believed to have been built by Parashurama, one of the ten avatars of Hindu god Vishnu and later expanded by Kundavarman.

[3] The temple dates back to the ninth century when Kundavarman, the most famous king of the Alupa dynasty, was ruling Tulu Nadu.

Pleased with the humility and virtues of the king, they informed him that his kingdom needed to be sanctified with a temple for Mangaladevi.

They asked the king to dig the place and relieve the lingam and the dharapatra symbolising Mangaladevi and install them in a shrine along with Nagaraja for providing protection.

[4] As per another legend, the temple is believed to have been built by Parashurama, one of the ten avatars of Hindu god Vishnu.

During the passage of time, the temple was covered by vegetation and was restored by Kundavarma of Alupa dynasty during the 9th century.

The metal plated flagpost or Dwajasthamba is located axial to the temple tower leading to the central sanctum.