Chandan (an illiterate and uncivilized toddy tapper) knew that his toddy was being stolen from his palm trees, so he decided to guard his palm trees. While he was keeping guard at night, he caught an old man stealing toddy from his palms. He got very angry and tried to shoot the old man using his bow and arrows but fell unconscious before he could let loose even an arrow.
Chandan's wife came searching for her husband. She cried brokenheartedly when she found him unconscious at the base of the tree. She saw an old man at the top of the palm tree, and called out to Him as "MUTHAPPAN" ("Muthappan" means grandfather in the local Malayalam language). She earnestly prayed to the God to save her husband. Before long, Chandan regained consciousness.
She offered boiled grams, slices of coconut, burnt fish and toddy to the Muthappan (Even today in Sree Muthappan temples the devotees are offered boiled grams and slices of coconut). She sought a blessing from Him. Muthappan chose Kunnathoor as His residence at the request of Chandan. This is the famous Kunnathoor Padi.
After spending some years at Kunnathoor, Sree Muthappan decided to look for a more favorable residence so that He could achieve His objective of His avataram. He shot an arrow upward from Kunnathoor. The shaft reached Parassini where the famous Parassini Temple stands today. The arrow, when it was found, was glowing in the Theertha (sacred water) near the temple. The arrow was placed on the altar of the temple. Since then, Lord Sree Muthappan has been thought to reside at Parassinikkadavu.