It is believed that the shrine of Mookambika Devi was installed by Adi Shankara. He worshiped Goddess Saraswati intensely, as a response to his dedication goddess appeared before Adi Shankara and agreed to go with him to Kerala. Goddess agreed to accompany him upon one condition that Adi Shankara who leads the way should not turn back to check whether she is following him. If he looked back and checked her, Goddess would stop there and will not move further.

On the way, when Shankara could not feel the presence of Goddess Saraswati, he looked back and assured her presence. Goddess Saraswati stopped her journey and stayed at that place as per her promise. After repeated begging and pleading of Shankara, the Goddess agreed to be at the Chottanikkara Temple in the mornings and come back to Mookambika Devi Temple by noon.

Kodachadri Hill houses places such as Chitramoolam and Ambavanam where Adi Shankara is believed to have meditated. Ancient Hindu Kings were patrons of the temple and the temple houses valuable treasures that are reminiscent of rich past.