Varaha temple is located at the front of the Lakshmana temple facing the west. It is an open pavilion with a pointed roof, enshrining the icon of Varaha, the third incarnation of Lord Vishnu. The Varaha image dates to about AD 950 and was possibly installed by the Chandella king Yashovarman as a celebration of victory over his Pratihara overlord. The massive Boar, measuring 2.66 m. by 1.75 m., is carved out of a single piece of solid yellow sandstone and is canopied by an exquisite lotus ceiling.

This magnificent Khajuraho sculpture in the round is positioned in the centre of the shrine with space for devotees to circumambulate. This divine animal carries more than 675 miniature figures on its body, in twelve neatly carved rows. These figures depict all the important divinities of the Hindu pantheon, including Ganesha, the seven Mothers, the seven sages, the eight Guardians of Space, the nine planetary divinities, the river goddesses, the seas, the Rudras, and the different forms of Vishnu. There was also an image of the Earth Goddess, which is now missing. Today, only her feet can be seen attached to the pedestal.

The architecture of this temple is comparatively simple which stands on 14 pillars which supports a high pyramidal roof capped with a Kalash. Along with its magnificent Image of Varaha it has columned halls with balconies, an entrance porch and the inner sanctum.

Thus with its architecture and legend of Lord Vishnu this is one of the most important temples which depict one of the seven avatars of Lord Vishnu.

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