It is believed that Adi Shankaracharya had a vision of Sri Mookambika Devi and installed the deity here. The legend says that Adi Shankara meditated at Kodachadri hills and Devi incarnated before him asking for his wish. He revealed his wish to install the Devi idol in a place in Kerala to worship where he wanted. Devi agreed but put forward a challenge that she will follow Shankara and he should not look back till he reaches his destination. But to test Shankara, Devi deliberately stopped the voice of her anklets when they reached Kollur whereupon Shankara turned and looked back because of doubt. Devi then asked Shankara to install her vigraha, just as he sees her, at that very location in Kollur. The original temple where Shankara meditated and Devi appeared before him is at Kodachadri peak,(1343 mt) which is at a distance of about 20 km from Kollur, also visible as a large mountain peak in front of the temple. There also a small temple dedicated to Mookambika near Kodachadri peak.