Lord Sri Rama installed the principal idol of Lord Shiva in the presence of Sita, Hanuman, Sugreeva and Vibheeshana upon his return to Ayodhya after defeating Ravana. Lord Sri Rama initiated Hanuman into taking from the Himalayas a divine Sivalimga. Hanuman went to the Himalayas searching for a unique Sivalinga everywhere, and took some time to do so. When the auspicious time for prathishta was approaching, Lord Rama decided to do the Prathishta at once, and he formed a Sivalinga and consecrated it using the earth from that location.When Hanuman returned, the prathishta was already over, and was very sad seeng. So Lord Rama asked Hanuman to remove the prathishta and to mount the Divyalinga which he had brought in his house.
Hanuman tried his best but as such remained the freshly formed earthen Linga. Instead, the surrounding land moved up to form a tiny hill. So Hanuman prayed forgiveness and sought permission from Lord Rama to stay close to the Divya Prathishta which he had done for ever. So Kaviyoor is the location of Hanuman. It is historically regarded as South India's most famous Hanuman temple. A second myth refers to Hanuman prathishta 's construction inside the temple complex. Sage Vilwamangalam once visited this temple and had a vision of Lord Hanuman sitting on the branch of the Ilanji tree on the north-eastern side of the outer courtyard upon entering the compound.
He prayed to the Lord to light up from the top of the tree and sit in the inner courtyard near LordShiva in a comfortable spot. Hanuman assented to his wish and sat on the Japa-Kindi sage in the inner courtyard's northwestern corner. Later, a separate sanctum for Lord Hanuman was established in AD 1934 as a result of a vision appeared to Maharaja Chithira Thirunal Balarama Varma.