This Beautiful scenery spot Siddha Ramappa Kolanu is located just a kilometre from main temple at its northern side. According to tradition, this is the place where God Mallikarjuna Swamy appeared to Sidhha Ramappa who hailed from Sholapur of Maharastra in 12th century A.D.
It is said that Siddha Ramappa at the age of 7 years came to Srisailam along with a group of devotees. In Srisailam he searched for God Mallikarjuna Swamy but could not find him. He asked to piligrims for Him and they showed the Jyothirlinga in the Temple. He did not believe and searched everywhere but in vain. At last he tried to fall in the lake of a valley and then God Mallikarjuna Swamy pleased with his devotion, appeared before him and saved him from fallen. Due to this, the valley is named as Siddharamappa valley and the lake at the down of it is named as Siddharamappa Kolanu.
The Devasthanam has constructed a flight of steps to this valley where there is beautiful water falls with its pleasant-sound reverberating the valley. This water fall using its silver cascade attracts one and all which flow in all seasons uninterruptedly.
The pilgrims of Karnataka and Maharashtra states visited this place compulsorily in their pilgrimage particularly during the days of Ugadi Uthsavams.