Vetharanyam is named after Vedaranyeswarar, the presiding deity of the Vedaranyeswarar Temple, a Hindu temple dedicated to Shiva. The place was earlier known as Tirumaraikadu, meaning the place where Vedas, oldest scriptures of Hinduism, originated. The 7th century Saiva canonical work Tevaram by Appar and Tirugnanasambandar mentions the place as Tirumaraikadu. As per Hindu legend, the Vedas worshipped Shiva in this place, giving the name Vedaranyam to the place. According to another Hindu legend, Rama, the seventh avatar of god Vishnu, is believed to have visited Vedaranyam to absolve himself from sins committed in the war against the demon king Ravana. The footprints of Rama is preserved in a place called Ramar Padam near Vedaranyam. According to a Tamil legend, the Vedas locked the gates of the temple after worshipping Shiva. The Nayanmars (Saiva saints) Appar and Tirugnanasambandar could not enter the locked temple. At this, on Tirugnanasambandar's request, Appar sang devotional hymns praising Shiva, after which the gates opened. Tirugnanasambandar's devotional hymns locked the gates again.