Lord Vayu performed penance for thousands of years to "Karpoora lingam" (Karpoora means camphor). Pleased with his penance, Lord Shiva manifested before him and said, "O Vayu Deva! though you are dynamic in nature, you stayed here without movement and did penance for me. Iam pleased with your devotion. I shall grant you three boons". Lord Vayu said, "Swami! I want to be present everywhere in this world. I want to be an integral part of every Jiva who is none other than the manifestation of Paramatma. I want to name this Karpoora Linga, which represents you, after me. Shiva said," Your are qualified for these three boons. As per your wish, you will be spread throughout this world. Without you there will be no life. This linga of mine will forever be known all over through your name. Lord Shiva disappeared after granting these boons. Thereafter, this Karpoora Vayu Lingam is worshipped by all Lokas (worlds).
There are other legends connected to the glory of the temple. Prominent among them is of Parvati (Gnanaprasunnamba) who was cursed by Lord Shiva to discard her heavenly body and assume the human form. To get rid of the above curse Parvati did a long penance here. Pleased with her deep devotion Lord Shiva again recreated her body – a hundred times better than her previous heavenly body and initiated various mantras including the Panchakshari. Consequent to this, Parvati gained fame and came to be known as Shiva-Gnanam Gnana Prasunamba or Gnana Prasunambika Devi.