According to the historical stories, the demon king, Ravana had gifted this place to his loving sister, Shurpanaka where around 14000 demons lead by Khara Dushana were done to death by the great Rama. It was Agastya , the great sage who gave the present name to the shrine as Hemachalam. There is a belief exhibited by the devotees that the deity, if alone, enflames the temple premises. But as the deity is affixed with a golden Goddess Lakshmi on his chest region, the deity assumes tranquility thus lessening the troubles due to fire accidents. It is a divine wonder to note that the sandal in the fluid form flows through the Umbilicus of the great Maha vishnu. Understanding the gravity of the miracles that the temple holds for itself, the devotees in large number throng to the temple to offer their prayers to fulfill their wishes, to beget children or to redeem themselves from sins and obstacles (doshas) that a student faces during his life career. There are many stories that are depicted regarding the miracles exhibited by the deity.
In this temple of fervour and devotion reside, the Yogananda Swamy accompanied by the Goddess, Sri Lakshmi, Hanuman as the Kshetrapalaka and Gods and Goddesses like Uma Maheshwara and Sri Venugopalaswamy to name a few.
Based on the historical significance of this great temple, it is assumed that this temple has been a center of religious prosperity even in the periods ruled by Krishnadevaraya and the Kakatiya kings. Looking at the regal grandeur of ornamentation of the deities and the funds released and the lands donated by these kings towards temple administration and governance give a feel of an affluent heritage of this enormous temple.
According to the Chinna Jeeyar Swamy , the Ramalayam in Mallur is older and the residing deity is taller than that of Bhadrachalam . presently, this temple is in ramshackle. It is our responsibility and earnest duty to help restructure it to uphold the cultural prosperity of the Hindus and the rich heritage of India.