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Nāka Tivu / Nāka Nadu was the name of the whole Jaffna peninsula in some historical documents. There are number of Buddhist myths associated with the interactions of people of this historical place with Buddha. The two Tamil epics of the second century - Kundalakesi and Manimekalai - describe the islet of Manipallavam of Nāka Nadu, this islet of the Jaffna peninsula, from where merchants came to obtain gems and conch shells. The protagonists of the former story by Nathakuthanaar, visited the island. In the latter poem by Sīthalai Sāttanār, the sea goddess Manimekhala brings the heroine to the island, where she worships Lord Buddha. She is also told of the petrosomatoglyph atop the mountain of the main island and a magic bowl Amudha Surabhi (cornucopia bowl) that appears once every year in a lake of the islet.

The Manimekhalai and the Mahavamsa both describe Buddha settling a dispute between two Naga princes over a gem set throne seat on an island known as Manipallavam or Nagadeepa, identified as Nainativu by several scholars. The Tamil language inscription of the Nainativu Hindu temple by Parâkramabâhu I of the 12th century CE states that foreigners landing at new ports must meet at Kayts and they must be protected, and if ships to the islet carrying elephants and horses get shipwrecked, a fourth of the cargo must go to the treasury.

The epic Manimekalai tells the story of the Chola king Killi who on a visit to the island fell in love with the naga princess Pilivalai, the daughter of king Valaivanan of Manipallavam. The prince born out of this union was Tondaiman Ilamtiraiyan. When the boy grew up the princess wanted to send her son to the Chola kingdom. So she entrusted the prince to a merchant who dealt in woolen blankets called Kambala Chetty when the latter's ship stopped in the island. During the voyage to the Chola kingdom, the ship was wrecked due to rough weather and the boy was lost. He was later found washed ashore with a Tondai twig (creeper) around his leg. So he came to be called Tondaiman Ilam Tiraiyan meaning the young one of the seas or waves. When he grew up the northern part of the Chola kingdom was entrusted to him and the area he governed came to be called Tondaimandalam after him. He is considered by some scholars to be the progenitor of the Pallava dynasty and the dynasty he founded took its name after the native place of his mother, that is Manipallavam.