The temple was founded by Yamato Takeru (although Readicker-Henderson says it was Kōbō Daishi), who, legend states, killed a fish monster here. Later, Kōbō Daishi revived it under the name of Manju-in and dedicated three Buddhas, a Jvichi-men Kannon, an Aizen Myōō, and an Amida Nyorai.

In the temple compound is the Yasoba fountain where the body of Emperor Svtoku was cleaned daily for twenty-one days after his death before being moved to Temple 81 for burial. The fountain looks like a pond in the dim shade of big trees. Legend states that Kōbō Daishi carved a statue of Yakushi in stone, dedicated it in this fountain, and performed an esoteric rite.

As an indication of how remote the pilgrimage is for foreigners, a woman at the Nōkyōsho told Readicker-Henderson while the temple receives about 100,000 visitors each year, on average only one of them is non-Japanese. And that one is usually an Indian.

This temple, as well, shares it's compound with a Shintō shrine. This shrine has a particularly thick shimenawa (ceremonial rope) over the entrance.