It is located in the Royal Palace Complex of the former Kingdom of Kandy, which houses the relic of the tooth of the Buddha.

The temple sustained damage from bombings by Janatha Vimukthi Peramuna in 1989, and by the Liberation Tigers of Tamil Eelam in 1998.

After the Maha parinirvana of Gautama Buddha, according to the legend, the tooth relic was preserved in Kalinga and smuggled to the island by Princess Hemamali and her husband, Prince Dantha on the instructions of her father King Guhasiva.

They landed on the island in Lankapattana during the reign of Sirimeghavanna of Anuradhapura (301–328) and handed over the tooth relic.

[1][2] During the reign of Dharmapala of Kotte, the relic was moved and was hidden in Delgamuwa Vihara, Ratnapura, in a grinding stone.

It was recovered in the time of Rajasinha II and it has been reported that he reinstated the original building or built a new temple.

Originally it was used by the king for recreational activities and later it was offered to the tooth relic, it now houses the temple's library.

The temple was attacked in 1989 by the militant organisation Janatha Vimukthi Peramuna (JVP); it had the intention of capturing the relic.

[5] And in 1998 by the militant organisation Liberation Tigers of Tamil Eelam (LTTE); this attack damaged the front side of the royal palace.

At the foot of the Mahawahalkada steps, there is a Sandakada pahana (moonstone) which is carved in Kandyan architectural style.

Mahawahalkada was totally destroyed in a 1998 bomb blast and rebuilt afterwards along with Sandakada pahana other stone carvings.

[11] Vikramabahu III of Gampola (r. 1356–1374) and Sena Sammatha Wickramabahu of Kandy (r. 1469–1511) built royal palaces on this site.

The Dutch orientalist Philippus Baldaeus visited the palace with General Gerard Pietersz Hulft in 1656.

During the beginning of the British period, it was used by the government agent Sir John D'Oyly, 1st Baronet, of Kandy.