This Temple occupies a special place in the galaxy of ancient sacred of Ujjain. Seated between the idols of Mahalakshmi and Mahasaraswati the idol of Annapurna is painted with a dark vermillion colour. The Shri Yantra ,the symbol of power or Shakti, is also enshrined in this temple.According to the Shiva Purana, when Shiva carried away the burning body of Sati from sacrificial fire, her elbow dropped at this place. Ther is an interesting legend in the Skand Purana about the manner in which Goddess Chandi acquired the epithet of Harsiddhi. Once when Shiva and Parvati were alone on mount Kailash, two demons called Chandi to destory them which she did. Pleased, Shiva bestowed upon her the epithed of 'one who vanquishes all'.
The temple was reconstructed during the Maratha period and the two pillers adorned with lamps are special features of Maratha art. These lamps, lit during Navratri, present a glorious spectacle. There is an ancient well on the premises, and an artistic piller adorns the top of it.