According to tradition, the temple was established by the sage Veda Vyasa, the compiler of the Vedas and author of the Mahabharata. After the Mahabharata war, Vyasa felt immense sorrow and was advised by Lord Krishna to worship Goddess Saraswati for peace of mind. Vyasa performed penance on the banks of the Godavari at this spot, and Saraswati appeared before him. At Vyasa's request, she agreed to remain at Basar to bless seekers of knowledge.
The name 'Basar' is believed to be a corruption of 'Vyasa Puram' or 'Vasara' (the sage's hermitage). The original temple had a small shrine built by Vyasa himself. The current structure was built and renovated over centuries, with the main temple complex receiving major additions in the 20th century. The temple is managed by the Telangana State Endowments Department.
