This place is of religious interest in the interiors of Dakshina Kannada. An outstanding example of religious and cultural tolerance where charity is a way of life, extended to all without discrimination. Lord Manjunatha temple is a famous pilgrim center. It is situated in the village of Dharmasthala, in Beltangady Taluk of South Canara district.

The History says that, One day the guardian angels of Dharma assumed human forms & riding on horse & elephant, came to Nelyadibeedu. Ammudevi Ballathi & her husband received the visitors with joy & respect. The angels were so pleased

with the welcome & charities that they said "Pergade (Pergade-Heggade) we are attracted by your pious conduct & charities. Offer this Nelyadi Beedu to us & build another house for yourself nearby & worship us in this Beedu & we will see that your wealth & charity be unbounded." Thus they blessed & vanished. It was then that Pergade & his wife were aware that their guests were not mortal beings but divine visitors who had chosen to test them. From that day they begun propitiating them by putting up a swing cot & burning lamps & incense in their Nelyadi Beedu. They built a separate residence for themselves nearby.

Pergade invited Brahmins for festive offerings, but they refused to come unless Gods were worshipped along with Daivas, Whilst Pergade was grieving over this problem the Dharmadevathas sent their vassal Annappa to bring from Kadri the Lingam of Sri Manjunatha & installed it at the spot in the temple where it now stands. Pergade built a temple there on the right side of the shrine of Dharma Daivas where the Lingam was installed by Annappa. The shrine of Annappa faces the Lingam of Sri Manjunatha. Thus in Kuduma, Sri Chandranatha, Sri Manjunatha & four Daivas & Annappa Daiva came to be worshipped simultaneously at different shrines with common festivals.