As per the Legends, Once Lord Venkateswara happens to reach Gundika river. Impressed with the beauty of the hill, he thought of taking rest here. Tammavarapu Hill told Lord that it can't bear him. Angered Venkateswara kicked the edge of the hill, part of which fell into Gundlakamma. Even today the broken piece of the hill can be seen in the middle of Gundlakmma. Mallavaram Hill requested Lord to take rest on him. Lord accepted the kind request and took rest on this hill for some time. Lord went around the hills on a Horse, footprints which are still visible. While leaving the place, Lord asked the Hill if you have any wish. Mallavaram with great devotion requested Lord to leave him velour on him. Lord granted the wish of the Hill and left the place. Later, while Sage Narada moving around this place, found the velour of the Lord and installed the Idol here. It is said that Serpent King Adisesha performed Pooja to the Lord here.