Mukteswara Temple is a small east-facing shrine within the complex about to the south of the main temple of Varahanatha. It contains a Shiva linga fixed over a circular yoni. It is dated to early 16th century during the Gajapati rule. The square shrine is in plan. It has a plain vada, half of which is buried, and as result during the rainy season and on account of the high flood level in the Vaitaranai River, the sanctum gets flooded. The vimana, which is square in plan, is of the pida-deula and is not well maintained. The temple is built with Khandolite stones set in Ashlar masonry and given a paint of white lime.