According to a local legend, the temple derived its name from Goddess Parasakthi, who killed a demon named Ambaran here. Ambaran was in buffalo form at the time of his death. Initially, during the Tamil month of Baisakhi, a buffalo was killed to memorize this event. Though this observance was discontinued in 1965, the splendor of the festival still continues.

Formerly, the place was known as Ambaran-urandha-oor, which literally means victory over Ambaran. It later became Ambagarathur.

Ambagarathur is 14 km west of Karaikal.