Though the history of the temple is not recorded anywhere , There are stories spread about the prosperous days of this temple.
Hundreds of years ago, there was a Brahmin family at 'Mayavaram' in Tamil Nadu. Astrologers predicted that, their child would die by a snake bite at the age of 16. As a resolution they had suggested that the Brahmin and family should visit and do the prayer at 'Vidyanatha Temple' at Kanjirangad near Thaliparamba-Kannur. So, th sad parents with their boy went there and started their prayer. The boy had a dream that, for further safety of his life, he should take refuge at the Thodeekalam Shiva Temple. So they came to this temple, and on the 16th birthday, after having the birthday feast, the boy went to the temple pond for washing his hands. On the way back to the temple, a Big snake came from the hill near the temple and followed the boy. The worried boy, ran towards the temple. He rushed inside the temple and cried, embracing the Lord Siva’s idol. Suddenly a small snake came out of the idol and killed the Big snake. Then this small snake crawled off towards a place, called Malur and disappeared. The parents of the boy had bought all these places till Malur and offered to the temple. With the income from such a huge land, the temple became prosperous. Later, with the land reforms act and tenant laws, the temple lost all properties. Still as a sacred memory, on the 'Sapthami' day of Malayalam month 'Vishika', a pair of tender coconuts and a traditional umbrella made of pine tree leaf is brought to the temple as a procession. The very next day that is on 'Ashtami' the one day festival is celebrated at the temple.