Parashurameshvara represents Shiva as the lord of Parashurama, one of the avatars of Vishnu. According to Hindu legend, the temple derives its name from the penance of Parashurama and the resultant grace of Shiva. Parashuramashtami is the major festival celebrated in the temple on the 8th day of Ashadha (June-July) when the festival image of Lingaraja is taken to Parashurameshvara Temple and feasted.