According to mythological stories and Saran Gazetteer page 464, Ambika Bhavani temple is considered to be located at the yagya place of King Daksh Prajapati. It was here that Mother Sati, enraged by the disrespect of her husband Lord Shiva, immolated herself in the sacrificial fire of the Yagya. Angered by this, Lord Shiva took out the dead body of Mother Sati from the Yagya Kund and placed it on his shoulder and started performing Tandav. Seeing the possibility of doomsday, Lord Vishnu cut Sati's body into pieces with his chakram. Wherever Sati's body parts fell, that place became famous as Shaktipeeth. While burning in the pond, the ashes of the body of Mother Sati were left in the Yagya-sthal Aami. This place became famous as Siddha Peeth Ambika Sthan Aami.

It is mentioned in Markandaya Purana and Durgasaptshati that later on, King Surath and Samadhi Vaishya had made a Bhaga-shaped pot of clay and worshiped at this place for years, then the goddess appeared and gave them the desired boon. The same huge square shaped clay pit is still present in this temple. The clay idol of the Mother Goddess is anointed daily with water, honey, ghee and jasmine oil. It is a miracle that not even an inch of the clay statue has been eroded. In India, only in this temple the Mother Goddess is worshiped in the form of a clay pot.Here a vow is made by putting one's hand in the pond located in the sanctum sanctorum of the temple. The wish is fulfilled by keeping the Prasad received from the Kund in a fist and hiding it in a red cloth and then the Prasad and the thing is returned to the Kund. The priest said that a huge crowd of devotees gather in the temple. For their convenience, the required cooperation is received from the local people. Devotees worship Shaktiswarupa with Chunari-Prasad and rituals. Mother Bhavani fulfills the wishes of the devotees who attend the court.