The temple is situated on the banks of the river Karamana, 6km south of the city. This 2000 year old temple is the only  temple dedicated to Sri Parasurama, the mythological creator of Kerala.

Many pilgrims visit this temple for 'Balitharpanam' (homage to the departed souls), when they make offerings to their ancestors, after taking a dip in the holy river. There is also a belief that the great monk Adi Shakara made the 'Bali'  for his mother at this place.