Many legends are associated with the temple. One legend involves a demon, Madhu-Kaitabh who was wreaking havoc upon the gods and humans. Unable to find any solution, they turned to Lord Brahma for help, and upon his advice turned to Goddess Shakti, who took up the form of a destroyer and powered by the other (Sapta) Mata Varaahi, Brahmi, Vaishnavi, Kaumaari Indraani and Saambhavi, vanquished the demon and restored peace. Legend also states that Bhavani finished another demon that had taken up the disguise of a buffalo (Mahisha), and took shelter on the Yamunachala Hill which is part of Balaghat mountain range. The Tuljabhawani temple is located on this hill. Another legend mentions the story of a sage known as "Kardam" After his death his wife "Anubuti" had performed a penance at the banks of river "mandakini " for Bhavani mata to look after her infant child. While performing the penance the demon known "Kukur" tried to disturb her penance during which the Goddess came to the aid of "Anubuti" and killed the demon "Kukur". From that day onwards the Goddess Bhavani came to be known as Tulja Bhavani.