The legend about this temple is connected with Vilwamangalath Swamiyaar, a devotee of Maha Vishnu. Once he got the revelation from Lord Krishna that the idol of Sree Krishna which had been worshipped by Sathyaki in Dwaraka, was in the river. He was instructed to take it and consecrate it with due rituals. The next day as he dipped in the river for his bath, his head touched something and he took it out. It was a beautiful idol. Swamiyaar constructed a temple at Thiruvalla to consecrate the idol. But as the day for consecration drew near, he had a dream in which he more was instructed to consecrate the idol at the place called Malayinkeezhu. That is how the idol came to be consecrated here. Bhoothathaan was the power that controlled the Ellumala in Malayinkeezhu. Though no temple has been constructed for him, there is a platform on the southern side of the temple where he is believed to be present. There is a custom that when the Lord goes for Pallivetta during the festival, the Vetta Kurup will call out twice in a loud voice and the third in a whisper so that Bhoothathaan would not hear it.