According to legend the Anjaneya temple here was established by Arjuna, one of the Pandavas, after the Mahabharata war. After the war Arjuna went on pilgrimage and bought his flag used during the war consisting of Vayu Putra image and installed it in Mulabagal, then called Shathaka vatipuri. Sage Vasishta is believed to have installed the idols of the main deity Srinivasa, Padmavati and Rama-Sita-Lakshmana.
Apart from the famous Hanuman temple, this town has Someswara temple dedicated to Lord Shiva. The Shiva linga here is similar to that at sacred Kashi or Varanasi. Legend says childless can pray for child by making pradhakshina.