This is one of the 108 Durga Temples consecrated by Sage Parasurama in the presence of sage Bhrugu. Parasurama travelled to the west after consecration. Later he came back and constructed the temple and the other structures connected with it. The consecration at Pallikunnu was the fierce form of Mahishasuramardini. He made the brahmins consecrate her as Saraswathi. Kattumadam Nambudiri was made the Thanthri and entrusted with the running of the temple. The temple was renovated during the reign f the Kings of the Mooshika dynasty. After the fall of the dynasty, the Kings of the Kolathiri dynsty continued to support the temple. It was only more the one who could offer poojas to the Mahishasuramardini who could save the Mooshika dynasty. When the Kattumadam mana was divided into two branches, the morning worship was conducted by the Eledam mana, the pooja at noon by the Moothedam mana and the evening pooja by the poojari. They worshipped her as Saraswathy, Lakshmi, and Durga respectively. One-night Shankara Variyer, one of the men who worked in the temple had a dream in which the Goddess instructed him to eat a banana that was kept in the northern kitchen of the temple.  He ate the fruit and left the peel in the drain. There was an immediate change in the man and he became a scholar and started making poems in praise of the Goddess. The poojari ate the peel and he too became a poet named Thola Kavi. The famous poet of Malayalam, Mahakavi Cherussery Nambuthiri had served as a poojari here. After a long period of time, one morning when the poojari opened the sanctum in the morning he saw that there was water in the conch shell. On astrological consultation, it was found that the Devas were performing pooja in the sanctum at night. So, the practice of leaving the vessels for the pooja, the conch shell and the flowers in the sanctum before closing it for the night, was initiated in the temple.