The festivals reveal the cultural heritage of Sri Lakshmi Narayana Temple in this small village of South India. The festivals performed in enormous pomp and grandeur and considered very sacred by the devotees. Various festivals are celebrated in this ancient shrine throughout the year. Nrisimha Jayanthi in the month of Vaikasi (May-June), Adi Puram (July-August), Sri Jayanthi and Pavitrotsavam during the month of Avani (August-September), Deepavali Utsavam during Aippasi (October-November), Vaikunta Ekadasi in Margazhi (December-January) and Panguni Uttiram (March-April) are some of the important ones. However, the most unique celebration is held during the month of Thai (January-February). On Mattu Pongal day, following Pongal or Makara Sankranti, Varadaraja Perumal, starting from his temple in Kanchipuram in the morning, travels approximately fifteen kilometers and visits this Lakshmi Narasimha temple in Pazhaiya Seevaram.

This journey is considered holy and a lot of devotees take part in this journey. He is then taken to the Varadaraja mandapam built on top of this hill, reached by a flight of steep steps and stays there in the afternoon when tirumanjanam and aradhana are performed for Him. Later in the evening, the images of Varadaraja Perumal and Lakshmi Narasimha are taken from the hill, across the Palar River to the shrine of Venkatesa Perumal in Tirumukkuda on the opposite shore. There, they are associated by two other deities from nearby places, and devotees offer their worship to this deities on this special day. Later in the evening, Varadaraja Svami comes back to Pazhaiya Seevaram along with Lakshmi Narasimha and then leaves for His abode in Kanchi. This festival is considered consecrated and it is a common belief that the unfulfilled wishes come to be fulfilled if these deities are worshipped properly in this special day.