This temple has a history for its origin. In Kritayugam there was a demon Kamasura in this place. He did penance to please Lord Shiva. Goddess Parvathi made him dumb to prevent him from asking boons. Later she killed him on Jesta sukla ashtami on the Kodachadri hill. So the Goddess is called Mookambika.
Kollur Mookambika temple is built in the Kerala architecture style. There is a 20 feet Deepa sthambam at the entrance. Gaja sthambam which has golden plating is a little shorter. Devotees have the darshan of these stambhas and then enter the sanctum sanctorium. Male devotees have to take off their vests and shirts before entering the temple. Mookambika Devi appears in a cross-legged position. Mookambika has four hands, with the chakram and sankham in the upper hands.
The idol of Goddess Mookambika was installed along with the Srichakram by Adisankaracharya. Adisankaracharya peetham is at the west side of the sanctum sanctorum. Earlier Devi appeared ferocious. Adisankaracharya did penance and make her tranquil. Adisankaracharya went to north India with the permission of the Goddess, it is said. All the kings who ruled this place worshipped and developed this religious place.
A Jyothirlingam is present in front of the idol of Mookambika. This lingam is divided unequally by the line. Devotees believe that the small portion of the lingam is the place of Brahma, Vishnu and Shiva; the big portion is the place for Saraswati, Mahalakshmi and Mahakali. Decorations and Pujas are held for the idol and Abhishekam to the Lingam.