Moncompu was under the rule of Travancore Maharaja. The original name of the place is called Kottabagam.

The name still exists for the place. Parvathil Kaimal was the commander in the Kingdom of Travancore Maharajah who wanted to construct a building. In order to fulfill his mission he was ferrying to the place collecting the wood required for the building.

He was collecting wood from a mountain near Palai, a place called Moncompu. While he reached a riverside called Punayar the wood got stuck up. He was astounded at the incident and the very moment it came to his mind that Devi is residing in the wood.

That too not one but there are three Devis residing. So he thought only after placing the Devis in the appropriate place he could start the construction. Under leadership of Kaimal all villagers joined together to develop a temple and that is how the place is now called Moncompu, reason being the deity originated from the wood brought from Moncompu.

Simultaneously the other two Devi's were placed near Moncompu, one at Vadayattu temple and the other at Muthittuvakkal Kshetram. There is also another story for the place being called as Moncompu.

When a stick of a mango tree was thrown from the place where the deity was to be placed It got stuck in a place. Accordingly the place is called Mankombu (meaning branch of a Mango Tree) which later on became Moncompu. All these stories pertaining to the temple and the place are more than 800 years old.

There were no Brahmins in that area to do the pooja and other rituals to be performed for the temple. Hence soon after the prathishta of the deity the local people invited a nampoothiri and his family from a place called Kolathu. He was offered some property for his livelihood. He was made to stay very near the temple. Those who lived near the pond were called as “kulangara Illathukarar. Still now they are taking care of the pooja and other rituals pertaining to the temple.

Thanthram is being done by Thazman Thanthris. Brahmins from far off places were invited for doing the other jobs pertaining to the temple. Along with them many cloth merchants and money lenders came and settled down in the place. Agriculture activities were carried on once in three years. Side by side money lending business also flourished.