Sri Laxmi Narasimha Swamy Temple is located at a distance of 36 kms from Palakollu.

Sri Laxmi Narasimha Swamy Temple was constructed in 15th or 16th centuries by Pallava kings and later Peddapuram Reddy kings. The present structure is said to be built by Kapanati Krishnamma of Agnikula Kshatriya clan in 1823. The temple tower has five storeys depicting various incarnations of Vishnu and sculptures of lions on four sides. Though the temple is not so big, it is one of the most primitive thirty-two Narasimha Kshetras in Andhra Pradesh. The main idol here is west-facing. The Lord is seen with His consort Lakshmi besides the banks of holy Vasishta Godavari.

On the roof of this temple, the picture of Vatapatrasai (Krishna sleeping on a floating banyan leaf) is seen. The statue of Lord Narasimha is seen along with Lakshmi seated on His left side. On the east side of this shrine, there is a separate shrine for Rajya Lakshmi and Lord Venkateswara. On the north side, there is a shrine for Ranganatha Swamy and His consort Bhudevi. On the west side, Santana Gopalaswamy's shrine is seen. On the south side of the main shrine, one can see a shrine for Lord Anjaneya with four hands who is the Kshetrapalaka or guardian deity of this temple. The sannidhi of Alwars is also seen here. On the other side of the main temple, Lord Neelakanteswra's temple is seen. This temple was managed by Peddapuram Rajas during the 18th century and later by Mogaltur Rajas in the 19th century.

Sri Laxmi Narasimha Swamy Temple is the only one Narasimha Kshetram where daily Panchamrita Abhisheka is done every day between 8:00 AM and 9:30 AM. One can see Nijarupa Darshanam (main idol without any decorative shield) between 6:00 AM and 8:00 AM. Sri Laxmi Narasimha Swamy Temple can be visited during timings 6:00 AM - 12:30 PM and 2:30 PM - 7:30 PM. Other ceremonies like Annaprasana, Upanayanam and Gopuja are also done here. Nityaannadanam is also organized here.