This temple is one of the oldest temples in the city. It is located towards the western part of the Fort, inside the Palace. An inscription found in Cole’s Gardens (present day Bannimantap) registers a Grant for God Lakshmiramana in A.D.1499 by an order of Vijayanagar King Narasanayaka, farther of Krishnadevaraya. According to Annals of the Mysore Royal family a half blind Brahmin had cured his blindness around the year 1599 at the interposition of Raja Wodeyar. A standing figure of the King in Anjalimudra (folded hands) facing the God commemorates this act.
Another miracle is also recorded in the Annals. Virarajayya, a Chieftain of Karugahalli, failed in his attempts to prevent Raja Wodeyar from passing through his dominion to the temple of Srikantheshvara Nanjanagud. To avenge his defeat, Virarajayya, bribed Srinivasaiah, the Priest of Lakshmiramanaswami temple to poison to Raja Wodeyar. The King would offer prayer in this temple everday. One morning the priest hand mixed poison in the sacred water (Tirtha). When he was offering it to Raja Wodeyar, his hands violently trembled. On questioning, the priest confessed the fact that the sacred water contained poison. The King drank the sacred water (Tirtha) which according to the Annals “Turned from poison into nectar in his throat”. The priest was punished by being transferred ti a nose of the Kannambadi (Brindavan Gardens). The ears and nose of the Karugahalli Chief were cut off, his fort was destroyed and bouty from his treasure were offered to the Royal family, Goddess Chmundeshwari. As an offering to Lakshmiramana for saving his life, Raja Wodeyar, built the Mahadwara to the temple, with a tall tower (Gopuram) embellished it with Golden finials. An inscription in the temple dated November 30, 1851, records that Krishnaraja Wodeyar got the doorway and dilapidated tower renovated. The handsome mantapa on the rear side of the temple was constructed by Kanthirava Narasaraja Wodeyar ( 1638-1659 A.D.). the temple is also important as all the Religious Ceremonies in connection with the coronation of child Raja Krishnaraja wodeyar were held in this temple on june-30-1799.