According to traditional stories, the temple was built by a king named Lakshmikanthan. Once he performed a yagna. The milk pots taken for the ceremony fell upside down when placed on the floor. When he dug the ground, he found blood oozing from the place due to the hit of the crowbars. The shocked king immediately built a temple on the spot.
Some of the Kongu Cholas who ruled this region had the name Karikala duri9ng the year 1004-1280 AD. It is believed that one such Karikala could have built this temple. One of the Karikala, with the help of one Samaya Mudali built 36 Shiva temples on the banks of Cauvery, according to one story.
A poor weaver Thandavan, living with his family in the area used to worship Lord Arudra Kabaleeswarar before proceeding to work. The Lord, with the intention of making the weaver’s devotion to Him known to all, went to his house when the weaver was absent. His wife alone was in the house. The Lord told her that He was suffering from biting cold and begged for a piece of cloth for cover. The woman told the Lord that she too had only one piece and promised what she could do for Him and asked his address. She was told that He would be outside the Arudra temple and left.
Sooner Thandavan returned after work, his wife told him what happened during his absence. The weaver rushed to his boss seeking a piece of cloth on credit promising to pay the price in instalments and got the cloth. He took the cloth to the old man in the temple, gave it to Him.
When the temple priest opened the sanctum sanctorum the next morning, he was surprised to see a new piece of cloth on the Lord and the Parivattam was absent. He informed the matter to all in the place. All gathered there including the weaver boss who said that he gave it to Thandavan. Thandavan narrated what happened. None believed the poor man, tied him in a pillar and began to beat him. Lord Shiva possessed on the son of the village head and shouted. "Despite one’s own difficulties, he/she should not hesitate to help those poorer than them. To establish this Dharam, I acted through Thandavan," and explained what happened.
Devotees began to throng the temple to have the grace of Lord Arudra Kabaleeswarar.