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Once upon a time, two people belonging to the Namboothiri caste of northern Travancore were meditating at Mookambika temple. They had with them an idol of Bhadrakali. After their meditation for a prolonged period, they received an oracle from Bhadrakali that the idol will have her perpetual presence. The Namboothiris continued their pilgrimage with the idol in their possession. As they became too old to continue their pilgrimage, Bhadrakali appeared before them and advised that Malayalappuzha was the ideal place to erect the idol. Following her advice, the Namboothiris reached Malayappuzha and erected the idol.

In the temple, Bhadrakali is seen in a ferocious form soon after the killing of the demon, Darika. 

Malayalapuzha Devi is believed to grant boons for extending prosperity to all the devotees. The goddess is worshiped for protecting the devotee from enemies, getting the unmarried girls married, obtaining jobs for the unemployed, and helping businesses flourish. This popular belief and faith make the temple visited by devotees from far locations. The Devi is also known as Goddess Idathattil Bhagwati.

The main idol is 5.5 feet high, made from katu sarkara yogam. In addition to this idol, two other idols are also erected inside the sanctum sanctorum; one used for abhisheka and the other for sreebali, a daily ritual.

Malayalapuzha Devi Temple features beautiful wall paintings and artistic stone carvings. The temple features a unique statue of Goddess Parvati feeding baby Ganapathy on her lap. An idol of Veera Bhadra can be seen on the entry to the sanctum. Sub deities in the temple are Brahma Rakshas, Nagaraja, and a swayambu Shiva Linga.