As per Hindu legend, once sage Pundarika was performing penance worshiping Vishnu at this place. He collected Tamarasa flowers and submitted it to view Vishnu in Ksirabdhi Natha form, his posture in Tirupaarkadal. He collected 1,008 flowers and in his intensity, he scooped out water also in full. Vishnu came in disguise in the form of sage and asked him for food. The sage went to acquire food for the old man, but while returning he found that Vishnu remained in the place. Since Vishnu stayed in this place, he was called Sthalasayana Perumal. The legend is sanctified by Bhoothatazhwar in his verses in Nalayira Divya Prabandham. As per another legend, sage Agastya is believed to have visited the temple and he came around the temple and prostrated before the presiding deity. As per divine intervention, he was advised to remain in Astavasramam in the northern part of Pundreeka Theertham (temple tank).