There are Puranic and traditional accounts of this Shrine, which are widely popular among the devotees. There is mention about the origin of this temple in the Skanda Purana, one of the famous 18 puranas.
Glowing bright atop the sikharam of garbha griha(Sanctum sanctorum) of this cave temple is the golden Sudarshana chakra (about 3 ft x 3ft) of Lord Vishnu (whose reincarnation is Lord Narasimha) the adornment as well as the weapon is a symbol this temple is identified by from as far away as 6 km. It is said that many years ago the chakra moved in the direction from which the devotees came as if like a compass guiding them towards itself.
Lord Narasimha is believed to have been worshipped by sages (rushis). The region of Yadagirigutta is reputed to be a "Rushi Aradhana Kshetram" or the place of worship for sages .
As the belief goes, Lord Narasimha has taken on the role of a "doctor" and is known as "Vaidya Narasimha" by his devotees at this shrine to cure many chronic diseases and the role of a 'do gooder' to those who are under the influence of bad planets, witch craft and black magic. Many instances are cited of the Lord appearing in the dreams of the devotees, and administering medicines and operated the patients and blessed them with good health. Many devotees tell of vivid dreams in which the Lord comes to heal them from chronic or terminal illnesses, and even mental or emotional problems. A mandala (40 day) pradakshina is very popular made by many a devotee cured of a long standing ailment or chronic disease. Oftentimes, the Lord Himself has imparted mantrOpadEsham to select devotees in their dreams.
Another Legend also has it that Sriman Narayana, pleased with YAda's tapas, sent Sri Anjaneya to direct the rishi to a holy spot, where the Lord appeared to him in the form of Sri LakshmiNarasimha. This spot is marked by a temple located at the foot of the Yadagiri hillock, and is located about 5 km from the present temple. There the sage worshipped the Lord for many years.
After Yadarishi attained mOksham, a number of tribals, hearing of the Lord's presence, came to worship Him at this temple. But, not being very learned, these devotees began to engage in improper worship. Because of this, Sri LakshmiNarasimha moved into to the hills. The tribals searched for many years to find their Lord, to no avail.
After many years had passed, the Lord appeared in the dream of a devout lady among the tribe, directing her to a large cavern wherein He revealed Himself to all as five majestic Avatharams.
The Aradhanam and Puja in this temple are performed according to Pancharatra Agamam. The puja vidhanam (Puja procedure) was set by Late Sri Vangeepuram Narasimhacharyulu who composed Yadagiri Suprabhatam, Prapatti, Stotram, Mangalashasanam and served as Sthanacharya of this temple It is also known as "Telangana Tirupati".Reaching there
Yadagirigutta is well connected by rail and road.
There are number of buses from Hyderabad, Secundrabad and other parts of district to Yadagirigutta. You can also reach there by train, After alighting at Raigiri, you can take an auto rickshaw or Tonga.