Shri Kshetra Dharmasthala located at a distance of 8KMs from Arippady Mutt Lodge.
Shri Kshetra Dharmasthala is a well know religious institution that has a history of about 800 years. Located in the temple town of Dharmasthala in Dakshina Kannada, it houses the deities of Shiva who is referred to as Mañjunatha, Ammavaru who is an ancient goddess who laid the egg that hatched Brahma, Shiva and Vishnu and the protective gods of Jainism, Kalarahu, Kalarkayi, Kumarasvami and Kanyakumari. The priests are Shivalli Brahmins, who are Vaishnava, and the administration is run by a Jain Bunt family called the Pergade. The eldest male member of the Pergade family assumes the position of Dharma Adhikari (chief administrator) and uses the title Heggade. The present Dharma Adhikari is Dr Veerendra Heggade.
The present day Dharmasthala was known as Kuduma, a village in Belthangady. In the house of Nelliadi Beedu lived the Jain family of Birmanna Pergade who was the village chieftain. It is believed that the angels of Dharma personified themselves and arrived at Pergade’s home in search of a place where Dharma was being practiced and could be propagated. The Pergade family looked after these angels with great respect and care which pleased them greatly. These angels appeared in the dreams of Birmanna Pergade and instructed him to vacate his house for the worship of the Daivas and dedicate his whole life to the propagation of Dharma. He did so without any hesitation and began worshiping the Daivas at Nelliadi Beedu.
This is how the worship of the daivas began and it continues to this day. Birmanna Pergade was again instructed by the Daivas to build separate shrines to consecrate the four Daivas — Kalarahu, Kalarkayi, Kumaraswamy and Kanyakumari. As desired, he built the shrines and invited Brahmin priests to perform the rituals. These priests requested Pergade to install a Shivalinga beside the native Daivas. The Daivas then sent their vassal Annappa Swamy to procure the lingam of Shiva from Kadri Manjunath Temple, near Mangalore. Subsequently, the Manjunatha temple was built around the linga.