Kalahasti and the hill Kailasagiri are famous in the Puranas. According to the Skanda, Saiva, and Linga Puranas, the idol of Sri Kalahastiswara is said to have been brought by Brahma the Creator from Mount Kailash as a gift from Lord Iswara. According to the instructions of the Lord, he kept the idol and worshipped the same, so that he may by his worship recollect the process of creation, which was forgotten by him. Hence it is that the hill is called Kailasagiri known as Dakshina Kailasam ( Southern Kailash)
North of the temple is the Durgambika hill, south is the Bhakta Kannappa hill and east is the Sri Kumaraswamy hill.
In the Kalahasti Sthalapurana it is clearly stated as to which Rishis worshipped which Lingam in each of the four yugas in order to attain salvation. The Sthalapurana, states. That when Brahma the Creator began to perform penance in the presence of this Linga, Lord Siva left Kailash and took his abode in this idol. Goddess Parvati finding that she had been left along herself, also came to this Linga and began her Pujas and penance. During this period Durga was her attendant. After the completion of the penance of Brahma and Parvati, Lord Siva gave Darsan to them. Durga, the attendant, was also granted a boon, and according to her wish she was converted into a Goddess. Hence there is a bill here called Durga hill. The Lord and the Goddess are taken out in procession on two occasions---on the ninth day of Mahashivaratri festival and on Makarasankranti day.
Kalahasti is surrounded by two sacred hills, and the one in the north has a temple of Durgamba, and the other in the south has the shrine of Kannabeswara, in memory of Sage Kannappa, who sacrificed one of his eyes as an offering to the Lord, and who when in the act of offering the other eye also was prevented by the Lord himself. The temple Of Kalahastiswara is situated to the west of Kalahasti hill. The two entrance Gopurams of the shrine is very imposing. In the second court of the temple is an underground cell, where Lord Ganapati, called here as Patala Vinayaka, is worshipped. This shrine which is 30 feet beneath the surface, is said to mark the level of the river that passes by. The sculptures of Sage Kannappa, Sakti Vinayaka, as well as the bronze figures of the Nayanars or Saivite saints in the temple are very ancient and beautiful.
The main entrance of the temple begins from Bikshala Galigopuram. Close to this and facing the east, is a temple dedicated to Kasi Viswanath Swami and Annapurna. Passing this we enter the temple Prakara called Bala Gnana-nanda Gopuram. Next to this is the temple of Patala Ganapati. There are two wells called Surya Pushkarani and Chandra Pushkarani and adjacent to these Pushkaranis is a Suryanarayana temple. Close to the western gate there is a temple of Subrahmanyaswami and also of Sadyomukti Ganapati. The Krishandevaraya Mantapa, the Jalakoti Mantapa, the Palagar Mantapa etc. are all situated closes by. Adjacent to these on the southern side, there is a pathway which leads to the Bharadwaja Ashram, Kannappa Hill and the Manikarnika temple.
The main gate of the temple proper faces south, and this is clear proof that the temple is dedicated to Dakshinamurthy, who is a manifestation of Lord Siva. Entering the temple, we then have the Vighneswara temple to our west. There are also idols of Appar, Sundarar and Manikkavasagar who are famous Saivite Nayanars saints. Next comes the sacred shrine of Sri Kalahastiswara and just before the main entrance is the idol of Kannappa, the great devotee, who, removed his eyes as an offering to the Lord. Many rare icons like Vallablia Ganapati, Mahalaxmi Ganapati and Saha-sralingeswara Swami also exist in the temple.
To the South, on the slope of the Kannappa bill, is a small shrine dedicated to Brahma in which the Linga figures with four faces in different directions. Close by on the boulders are bas-relief sculptures of Saivite mythology. The Manikanteswara shrine, which is also close by, is of very ancient origin with an important inscription. The rock-cut "mantapa to the south-east of the temple is called the Maniganniagattam, in memory of a woman having been blessed with the holy Taraka Mantra by the Lord Siva himself. Whispering it into her right car.
The river Suvarnamukhi is also a famous one in the Puranas. In the Puranas it is stated that Agasthya Maharshi brought this sacred river. It is a perennial river. It is also called Uttara Vahini, as it flows from south to north at this spot, which is a rare phenomenon. It is stated that Lord Indra got rid of his curse from Maharshi Gautama after taking his bath in this river.
