There are Purana and traditional accounts of this Shrine, which are widely popular among the devotees. There is mention about the origin of this temple in the Skanda Purana, one of the famous 18 puranas.
Another Legend also has it that Sriman Narayana, pleased with YadaRushi penance, sent Sri Anjaneya to direct the rishi to a holy spot, where the Lord appeared to him in the form of Sri LakshmiNarasimha. This spot is marked by a temple located at the foot of the Yadagiri hillock, and is located about 500 meters from the present temple. There the sage worshiped the Lord for many years. After Yadarishi attained moksha, a number of tribals, Knowing of the Lord's presence, came to worship Him at this temple. But, not being very learned, these devotees began to engage in improper worship. Because of this, Sri LakshmiNarasimha moved into to the hills. The tribals searched for many years to find their Lord, to no avail.

After many years had passed, the Lord appeared in the dream of a devout lady among the tribe, directing her to a large cavern wherein He revealed Himself to all as five majestic Avatars.The Aradhanam and Puja in this temple are performed according to Pancharatra Agamam. The puja vidhanam (Worship procedure) was set by Late Sri Vangeepuram Narasimhacharyulu who composed Yadagiri Suprabhatam, Prapatti, Stotram, Mangalashasanam and served as Sthanacharya of this temple.

Mythological & Historical:

Sri Maha Vishnu Came from out of the pillar as per the desire of Bhakta Prahladha and killed Hiranya Kashyapa,who is father of Prahladha ,who is beloved devotee of Maha Vishnu.

In Ancient days Sri Yada Maharshi son of Sri Rushyashrunga Maharshi with the Blessings of Anjaneya Swamy had performed great penance for Lord Narasimha Swamy. After securing blessing for his penance Lord Narasimha had come into existence in Five Avatharas called as Sri Jwala Narasimha, Sri Yogananda Narasimha, Sri Ugra Narasimha, Sri Gandaberunda Narasimha, Sri Lakshmi Narasimha. As such this is known as “Pancha Narasimha Kshetram”. The devotees who worship this deity with devotion, the problems faced by them in regarding their “Graha”, the difficulties through evil spirits and their all mental problems are being cured by the God & Godess. All the difficulties faced by the devotees are being cured through herbal medicines like fruits, flowers and Tulasi Teertham. The devotees who believe the Lord. He is appearing to them in their dreams and conducting operations also.