The legend regarding the giving up of life of Dhadichi says that once Indra the king of the Devalokas was ousted by an asura named Vritra. Vritra was with a boon that no weapon made of metal or wood could kill him. As a result Indra was confused so he had approached Lord Shiva. Even Lord Shiva and Lord Brahma could not give any solution to the problem. Finally they approached Lord Vishnu who said Vritra could only be killed by the weapon made with the bones of Dhadichi. Therefore Indra approached Dhadichi whom he had once beheaded and requested him for the favour. The sage soon agreed to the request of the Devas and said that only he wanted to visit all the holy places before giving up his life. At this Indra brought all the holy waters Naimisharanya. And then Dhadichi gave up his life through the art of Yoga and the weapon called Vajrayudha was made from his spine and it was used to kill the demon Vritra.
Some of the other legends which are associated with Maharishi Dhadichi are that Dhadichi was the first one who had left the sacrifice ceremony of Daksha because Lord Shiva had not been invited in it. The Mantra of Devi Hinglaj is also attributed to saint Dhadichi.