Constructed in the Dravidian style of architecture, the temple is glorified in the Naalayira Divya Prabandham, the early medieval Tamil canon of the Alvar saints from the 6th–9th centuries CE.

It is one of the 108 Divya Desam dedicated to Vishnu, who is worshipped as Sthalasayana Perumal and his consort Lakshmi as Nilamangai Thayar.

The temple is believed to have been built by the Pallavas, with later contributions from the Medieval Cholas, Vijayanagara kings, and Madurai Nayaks.

He collected Tamarasa flowers and submitted it to view Vishnu in Ksirabdhi Natha form, his posture in Ocean of milk.

As per divine intervention, he was advised to remain in Astavasramam in the northern part of Pundreeka Theertham (temple tank).

[4] As per another legend, a king by name Harikesarivarman used to visit the Nithyakalyana Perumal temple at Thiruvidandai everyday from Mahabalipuram and wanted to settle there.

The northern wall has inscriptions of Dalavay Thirumalanayaka giving grants of lands in Kunnatur village to the temple.

Another inscription made during the reign of Kulothunga Chola II (1133–1150 CE) indicates gift to meet the expenses towards recitation of Thirupalli Ezhuchi in the temple.

The inscriptions from Telugu Choda dynasty during 1252 CE mentions gifts to Brahmanas for the perpetual lighting of the temple.

The inscription made during the reign of Pandyas during 1288 CE indicates gift for the feeding house of the temple.

The temple is located close to Arjuna's Penance,[9] the most famous landmark of the Group of Monuments at Mahabalipuram.

There is an east facing shrine to the right of sanctum for Lakshmi, the consort of Perumal, in the form of Nilamangai Thayar.

As at other Vishnu temples of Tamil Nadu, the priests belong to the Vaishnavaite community, of the Brahmin varna.

The temple rituals are performed six times a day: Ushathkalam at 7 a.m., Kalasanthi at 8:00 a.m., Uchikalam at 12:00 p.m., Sayarakshai at 6:00 p.m., Irandamkalam at 7:00 p.m. and Ardha Jamam at 10:00 p.m. Each ritual has three steps: alangaram (decoration), neivethanam (food offering) and deepa aradanai (waving of lamps) for both Sthalasayana Perumal and Nilamangai Thayar.

During the evening, the festival images of the presiding deity of Stalasayana Perumal and Bhoothath Alvar is taken around the streets of the temple.