According to Indian mythology, once Lord Krishna could not locate his grandson Aniruddha. Legend has it that Usha, a mystic daughter of demon king Banasur, dreamt of Aniruddha, fell in love and stole him from his family. Krishna's efforts to find Aniruddha bore no fruit and as days and weeks passed by, he grew worried. In search of answers and peace, he then came to Gokarna, took a dip in the holy pond of Kotiteertha and prayed. Lord Shiva was quick to realize a grandfather's agony. Though Banasur was his disciple too, Lord Shiva advised Lord Krishna to confront king Banasur about Usha's trickery. Eventually, Krishna and Banasur fought a pitched battle and later, upon Shiva's intervention, had Aniruddha and Usha married.

To commemorate Krishna's visit to Gokarna and his meeting with Lord Shiva here, this temple is established on the banks of Kotiteertha. The statue is artfully carved in a granite-like stone and shows Krishna holding a flute. The facade of the temple sports blue-coloured windows. This corner-plot structure along the streets of Kotiteertha is unassuming and may pass off as simply a two-storey residential building. The premises of this temple may be locked during afternoon hours.