As per another legend, Vishnu took the avatar of Narasimha to slay the demon king Hiryankasipu. Hiranyakasipu was troubling the Devas as he got a boon from Brahma that no human can kill him. His son Prahlada was an ardent devotee of Vishnu, against the likes of his father. Hiranyakasipu tried to slay Prahlada by various means, but was saved by the divine grace of Vishnu. Vishnu took the avatar of Narasimha and appeared from a pillar. Narasimha was a human with lion face and slayed Hiranyakasipu on an evening time in a doorway, which was neither land nor air. His anger was not quenched even after slaying the demon king and Lakshmi came and sat on his lap, after which he calmed down. It is believed that since Narasimha did an aalinganam (meaning hug), the place came to be known as Thiruvali. The uniqueness of this temple is that Lakshmi is seen sitting in right side of Narasimmar which is very rare to have darshan as in most temples Lakshmi is seen in left side of swamy Narasimmar. Ahishekam in swathy star day gives very good blessings of the divine couple.