Mythologically, Punyasthala has a very rich heritage. According to the Narashima Purana, it is believed that in the Krutha Yuga, Prahlada did puja of Lord Narashima on this land which was then on the bank of river Swargawati.
The Narashimha Bunde at Punyasthala has been worshipped from times immemorial as an edifice of this event. Guruji worshipped this stone ceremoniously once every twelve years. A tradition that continues till date.

In the Thretha Yuga, this was part of Dandakaranya when Shri Ram on his way to Lanka established a Rameshwar (Shiva) Temple that is worshipped even today.

In the Dwapara Yuga, during Banawas the Pandavas visited this area and Bheema killed a demon named Kimmisura. In Kali Yuga, Sri Raghavendra Swamy visited his disciple Sri B. Srinivasacharya in the same area. Ragavendra Swamy came in a vision and instructed Guruji to build an Ashram on this land. It was then purified with a number of Yagnas and construction started.

Additionally Guruji worshipped deities gifted to his ancestors by Shri Vidyaranya Swami (12th century ) and Sri Vyasaraya Swami of Vijayanagara kingdom during the reign of Shri Krishnadeva Raya (15th century). Even to this day every Vijaya Dashami (Dussera) the family jointly worships these deities.