This Mandiram is at about 2 K.M from the main temple at its western side. At this place there is a small water stream between two natural rocks and the stream is named as Mallamma Kanneeru (Happy tears of Mallamma), the Devotee of God Mallikarjuna Swamy. Here a Mandiram was constructed to Mallamma in which daily poojas are being offered to Her.
The story of Mallamma date backs to 14 the century. At that time there was a village, Sivapuram (also known as Ramapuram ) near to Srisailam and Mallamma is hailed from that village. She was born to her parents by the grace of God Mallikarjuna Swamy and she devoted Him from her child hood itself.
When Mallamma grew young enough, she got married Barama Reddy, the son of Hema reddy, a rich family of Siddhapurama nearby village. In her in-law’s house also Mallamma continues the worship of Mallikarjuna Swamy and this was unable to tolerate by her mother-in-law and co-sister both are rude in nature. They always ill-treated Mallamma and she was peacefully abiding it. At last they told badly about the character of Mallmma to her husband and he decided to kill her. But by the miracle of God Mallikarjuna Swamy, he known the real fact and changed his aptitude. By this happening Mallamma reached Srisailam, maintained Goshala and worshipped God Mallikarjuna Swamy with Goksheram (Cow milk) besides preaching of Sivathatvam and breath ends here.