It starts with the visit of the Puranic sage Parashurama, one of the manifestations of Lord Vishnu. Seeing there, an old hallowed place of dynamic otherworldly force in a broken-down condition, the sage was distress blasted and needed to know its history. Immediately, sage Narada showed up there and identified with him the narrative of the sanctuary. 

Legend has it that Shiva gave three holy Shiva Lingas to Parvati/Sati for worship. One sage, Maandhata, satisfied Lord Shiva with extraordinary supplications. Shiva was satisfied to such an extent that he introduced one of the Shiva Lingas to him with the directive that it ought to be introduced uniquely at a spot where there was no incineration ground. The savvy, subsequent to looking through all finished, discovered Taliparamba the most consecrated spot where he introduced the Shiva Linga. 

After his demise, the Linga vanished into the earth. Then his child Muchukunda offered comparative petitions to Shiva and got a second Shiva Linga, which also vanished in course of time. Hundreds of years passed. The third Shiva Linga was passed on to Satasoman, a lord of Mushaka/Kolathiri/Chirakkal Royal Family, who at that point managed the area. 

He was a passionate aficionado of Shiva. On the counsel of sage Agastya, he implored Lord Siva, who allowed him the Shiva Linga. Ruler Shathasoman immediately petitioned God for Sage Agasthya's assistance. The sage showed up and subsequent to lighting a ghee light prostrated before the Shivalingam multiple times; when he started the thirteenth surrender, the Lingam got solidly fixed on the earth in this way the number of surrenders the Sage Agasthya performed for his motivation came to be known as twelve and a half. 

It is accepted that Sri Rama during his triumphant gets back from Lanka halted here to offer love to Lord Shiva. Out of appreciation for His essence, enthusiasts are not permitted into the namaskara mandapam even today.