The temple has got a great importance in the history of Kerala. There are some stones still in the temple in connection with its history. Built in AD823 by Cheraman Perumal Nayanar Rajasekara Varman century, there is an Era in the name 'Kandiyoorabdam' from the formation of the temple. It was in wide spared use till the introduction of “Kollavarsham”. Kandiyoor is called the Kasi of the South, Thekkan Kasi ( Dakshina Kasi ). The temple was of Odanadu King later captured by Kayamkulam King and Marthanda Varma. When there was a war between Odanadu and Kayamkulam, defeated Kayamkulam King entered the temple, surrendered his “udaval” (Sward) and escaped through the rear door. This rear door is still remaining closed even after centuries.

The temple has one of the biggest prathishta, made by Sree Chola Rajas. Kandiyoorappan, The principal deity faces east, inside a two tired sanctum.In front of the sanctum of the principal deity a platform is set for the devotees to stand and worship kandiyoorappa. This is not a part of keralas traditional style but of Hoysala style of Architecture. Standing on it, one will feel the entire cosmos just shrank into deity and the devotee.Many ancient literature mentions about the place Kandiyoor and Kandiyoor temple. One of that is “Unnunooly Sandesam” of Manipravala literature believed to be written around AD1350. Another one is Damodara Chakyar’s “Unniadi Charitham”, another Manipravala literature. This also narrates about the pompous Sreeparvatam market at Kandiyoor - Mattam which is one of oldest market known as per the available history. Also there is the famous “Kandiyoor – Mattam Padappattu”.

An unusual compound wall of Gajaprishta syle (Back of the elephent) of architecture which height about 10 feet is believed to be constructed by Bhothaganas of lord Siva in a single night. According to this myth the walls of the near by Chengannur Mahadeva temple and Mannar Kuratty Mahadeva Temple are constructed in the similar way. Bhoothaganas could not complete the construction of wall of Chenannur Mahadeva temple and is remaining as such leaving a small portion.

People of Kandiyoor keep this holy place sacred even now though their unique rituals continuing since the time immemorial. One can rarely see any multi storied building, more than the height of the “Thazhikakkudam" (tomb) of the temple, in this place. Also strictly no cremation is taking place in this sacred place. People of this land use a distant compound known as “Kakkaramkuty” for cremation, irrespective of their race, cast or religion. The temple will remain closed in the death of any body in this place, till the body is moved away from here for cremation.