It was established in 1827 by Narayana Pillay, who came from Penang in the company of Stamford Raffles during the latter's second visit to Singapore in May 1819.
As an act of piety and gratitude, Pillay built the temple using wood and attap.
The Chinese name for this street, hei yuen hau jie or "theatre back street", refers to the Lai Chun Yuen Opera House located at Smith Street, a major landmark from the 1880s up to World War II in Chinatown until it was damaged by a bomb during the war.
Cantonese operas were popular here until 1927 and converted as Sun Seng Cinema by Shaw Brothers and now as Santa Grand Hotel.
Temple Street was home to many Teochew traders who sold Chinaware and household items.