The antique temple of the Sri Bhuvarasvami temple is famous for the observation of the festival, with brightness and grandeur. The performance of the festivals with grandiose splendor is an additional feature of the traditional temple of Sri Bhuvarasvami. A number of important festivals are celebrated in the Bhuvarahasvami temple in which the Pancharatra mode of worship is followed. The most important festivals are the two Brahmotsavams of this temple. One is held in the month of Masi (February-March), beginning on Bharani Nakshatram and continued till Pusham Nakshatram for seven days in Srimushnam. On the eighth day the Lord is taken to Perumattur village and on the ninth day to Thaikal village near Killai by the seashore. From the tenth day onwards the deity visits the places like Vazhkai, Lalpuram, Chidambaram, Melamungilari, Bhuvanagiri, Alampadi, Tettampattu, Ramapuram and Kavaraipazhai villages where pujas are offered and then returns to Srimushnam. The festival of Brahmotsavams is observed with overwhelming magnificence in the Bhuvarasvami temple.

The festivals observed in the temple not only include offering worship to the gods but also worship is offered to the benefactors of the temple. The Thaikal village was once the capital of a Muslim ruler who is believed to have given many benefactions to this temple and also constructed a mandapa at Killai. After his death the Muslim ruler is taken to the sea for Tirthavari. At that time offerings are made in front of the dargah where this ruler is buried and the deity's garland is laid on the grave. This occasion calls for a big festival in the Bhuvarasvami Temple.

The other Brahmotsavam is in the month of Chittirai (April-May) and this festival takes place in Srimushnam village itself. Many other festivals are celebrated here almost every month as with other Vishnu temples. However the festivals observed in the temple gives the temple a special significance among the Vishnu Temples in South India.