The town derives its name from the presiding deity of the Kadamba Vaneswarar temple. The 7th century Nayanmars (Saiva saints) Thirunavukkarasar, revered the place as Kadambandurai and Kuzhithandalai in his works in Tevaram. The word Kuzhithandalai, in modern times, is denoted as Kulithalai. As per Hindu legend, Saptha Matha, the seven divine virgins were praying to god Shiva in the Kadamba forest located here to save them from a demon named Doomralochana. Shiva is believed to have killed the demon to save the forest and the virgins, thereby getting the name Kadhambavaneshwarar, meaning the Lord of Kadamba Forest.
