The history begins over 800 years ago when the local Jain chieftain Barmanna Pergade and his wife Ammu Ballalthi hosted four Dharma Daivas (guardian spirits) who appeared in human form. Pleased with their hospitality, the Daivas instructed Pergade to build shrines for them, vacate his own house for their worship, and dedicate his life to charity and the propagation of Dharma.

Tulunadu Craftsmanship

The temple showcases traditional Tulunadu architecture, heavily utilizing intricately carved wood and stone, with sloping laterite roofs designed to withstand the region's heavy monsoons. The complex is vast, housing not only shrines but also monumental, highly modernized dining halls (Annapoorna Choultry) capable of feeding up to 100,000 pilgrims a day, along with massive vintage car and heritage museums.

After building shrines for the Dharma Daivas, Pergade was instructed to also install a Shiva Lingam. A local Daiva named Annappa Swamy is said to have miraculously procured the sacred Shiva Lingam from the Kadri Manjunatha temple in Mangalore, bringing it to Dharmasthala in a single night. Thus, Lord Manjunatha became the presiding deity of the Kshetra.

The ritual worship is highly unique: the deity is Lord Shiva, but the daily poojas are performed by Madhva Vaishnava Brahmins. Another pivotal aspect of Dharmasthala is the 'Hoyu' system, an ancient dispute resolution mechanism. Civil and domestic cases are settled by the Dharmadhikari acting as the representative of Lord Manjunatha, and his judgment is considered divine law.

It is a deeply held belief among locals that the kitchens of Dharmasthala are blessed with 'Akshaya' (inexhaustibility). No matter how many thousands of devotees unexpectedly arrive, the Annadaanam food never runs out. Furthermore, there is a profound fear and respect for the Dharmadhikari's justice system; it is believed that anyone who lies to him while taking an oath in the name of Lord Manjunatha will face severe, immediate divine retribution.

The grandest festival is Lakshadeepa (Festival of a Lakh Lamps), celebrated during the month of Karthika (November-December). The entire temple town is illuminated, accompanied by massive literary, musical, and religious congregations. The anointing of the Bahubali statue (Mahamastakabhisheka) is also a major, though infrequent, event.