The temple is dedicated to Lord Shiva and Parvati who is known over here as Avaiyambigai. The town derives its name from the temple and its significance. The Sanskrit Mayavaram was replaced with the Tamil 'Mayiladuthurai'. Mayiladuthurai' literally means 'peacock town'. Mayil stands for peacock in Tamil, Aadum means dancing or to dance and lastly, Thurai means a place. The idol shows Goddess Parvati worshipping the lord Shiva in the form of a peahen.

It is said that the powerful king Daksha, the father of Goddess Parvati once held a yagna where he invited all the important gods but intentionally he did not invite the most powerful of all gods, Lord Shiva just to take the opportunity to humiliate him in front of the other gods. Shiva did not wish Parvati to visit her father's yagna because of the fact that her father had humiliated and insulted him by ignoring him from his list. But Parvati went there adamantly to check her father and got insulted by Daksha instead. Parvati had ignored Shiva's advice and thus by a curse she became a peahen. She suffered immensely in this place to please the Lord. Seeing her penance, love and devotion, Lord Shiva appeared in the form of a peacock and danced around her. That ritual is called Mayura Thandavam. The lord shiva is thus worshipped as Mayuranathar.

Mayiladuthurai annually celebrates the Natyanjali festival. It is celebrated during Maha Shivaratri. In the month of November, devotees take part in the Kada Mozhukku and the Modavan Mozhukku rituals. Modavan Mozhukku is the holy bathing ceremony organized in river Kaveri during this festival. This holy bath is very special for the devotees because it is said to cure physical and mental ailments. Sometimes on auspicious days, the deity is brought to the Kaveri River and many people from far and wide who could not perhaps make it to the temple due to health issues can have a visit here. This holiness draws a wide number of tourists every year.