This temple is in Panavally in Alapuzha District. It is believed that in ancient times this place was surrounded by water bodies in which the celestial beings used to enjoy themselves. A sage who came to know about it visited the place with his disciples. He saw Lord Parameswara with a smiling face here and requested his Guru, Parasurama to consecrate the Lord in that mood there. After the consecration, the sage disappeared. But the general belief is that he is still there as a Gulikan. Ganapathy, Bhagavathy and Nagayakshi are the sub-deities.