Legend says that when there were constant raids in the Malabar, many Hindus left the place. Two Namboothiri ladies who had lost all their family members, ran away from home taking the idol of their family deity and whatever they could salvage from their home. After a long walk they came to Mannatheth kavu on the opposite banks of where the temple stands today. They stayed there and started offering poojas for the deity. The elder of the two went out in search of something to offer the deity. When she was too tired to go any further, she went to the Kaippuzha house and asked more for some water to drink. As she was drinking the water, she saw the vessel in which arrack was kept and understood that she had gone against the norms prescribed for the Namboothiris by taking water from there. So, she decided to stay there. The younger sister approached the eldest member of the Kaippilly family and entrusted the sword and anklets of the Goddess there. He gave her some place to live near his house. As the two sisters were separated there was nobody to offer poojas to the idol kept at Manatheth kavu. The Goddess started showing her wild nature. She started attacking those who went that way and taking away the materials that were being taken to be offered to Thrikkovilappan and Thrippara Thevar. This enraged Thrikkovilappan who took the idol and threw it into the village below on the other side of Achankovil river. He said that she would get what she needed there. The eldest member of the Kaippilly family had a dream and as per the instructions of the Namboothiri woman he consecrated the idol there. Once she got the place she deserved, the Goddess lost her demonic nature and became calm. As the idol was thrown down to the village the Goddess came to be referred to as Thazhooramma.  Even today the sword and anklets are brought to this temple from Kaippilly once a year by the present members of the family. Devotees believe that anyone who deeply believes in the Goddess and prays to her will not be abandoned. The Goddess here is worshipped as Saraswathy, Lakshmy and Kali. There are 51 sculptures of the ‘Akshara Devatas ‘Deities of the Letters here on the outer wall of the Balikkalpura, corresponding to the 51 letters of the Malayalam alphabet. The chain made out of a single stone at the Yakshi ambalam is also unique to this temple.