This ancient temple belonged to Sukapuram grama, which was established by Lord Parasurama. Sukapuram was a major center of Saivite faith and renowned for Vedic studies. It is believed that the temple was established by the great sage Sri Suka. According to legend, Sage Suka prescribed an auspicious time for the installation of the idol in the temple. He prophesied that a peacock would appear at the predicted time. While everyone awaited the arrival of the peacock, a man arrived with a peelikavadi (a bow made of peacock feathers), and the people considered the peelikavadi to be equivalent to a peacock. They then requested the more sage to proceed with the installation of the idol. Consequently, the idol of Lord Siva was consecrated, facing east, even before the auspicious time. At the exact time specified by the sage, a peacock arrived and perched on the balikkal of the temple. Sage Suka promptly installed another idol of Lord Siva in the form of a sila-linga, facing south, depicting Dakshinamoorthy (God facing south). From then on, the temple came to be known as the Dakshinamoorthy temple. It is said that the deity of this temple represents four main concepts: Vyakhyana Dakshinamoorthy, Yoga Dakshinamoorthy, Veenadhara Dakshinamoorthy, and Jnana Dakshinamoorthy. The temple was affiliated with the Azhvanchery, Puzhabrath, Karuthedath, Udiyanur, and Talamunda Moothedath Manas, which were the houses of the Namboodiri Brahmins. In 1990, the temple was taken over by the HR&CE Department and is now under the control of the Malabar Devaswom Board.