There are several legends about the magnificence of Madhur Temple. The Brahmanda Purana tells us that Bhargava Rama established the deity of Lord Vighneswara and offered prayers. The Skanda Purana tells us that Dharmagupta, the king of Trigarta Dravida kindom drew the sketch of Mahaganapati on a wall on the banks of river Kashmira as per the suggestion of Vasuki, to ward off the obstacles he came across while performing the Maharudrayaga.
He then built a temple around the sketch and established the Linga of Shree Madanantheshwara. Another source has it that a brahmin lady named Parvathi amma created an idol of Shadakshari Ganapathy out of caramelized sugar syrup (Kadusharkara Paka) and offered prayers. As per popular folklore, Madaru a mogera lady from Kulovuthadka (Uliyathadka) was digging in the forest for tubers and her sikle accidenty hit a Shivalinga. It is said that blood flowed from the Shivalinga, which was then established as the deity on the banks of Kashmira river at the place which had remnants of an old temple. This place came to be known as Madhur.