Legend says, ‘Jaai’ a newly married girl was going to her in-law’s house along with her father and husband. As her in-law’s house was on an island named Parikuda-Gada in Chilika Lake they had to take a boat to ferry them across the Chilika lake. During this boat trip they encountered with a severe Cyclone, as a result their boat capsized in the Chilika Lake. All the boatmen and her father survived this event except for the girl Jaai. They searched for her a lot but were unable to locate her. After this accidental death of that newly wed girl Jaai, she became the Goddess of people residing nearby and till now, she is worshiped as an Amsa of Kali. And, this is how the place got its name as Kalijaai. According to a poem by Pandit Godavarish Mishra, Jaai was a girl who was going to get married in Parikud island. The boat capsized in the storm. She met her tragic death and became the deity Kalijai. However, it’s attributed to the imagination of the poet and may not be evidenced. Dr. Radha Charan Panda mentions in ‘The History of Parikud’ (1930) that this temple was built by Sri Jagannath Mansingh, king of Bankad (currently known as Banapur) in the year 1717.