Krishnadevaraya built this temple in 1513 A.D. to commemorate his victory over Prataparudra Gajapati, the ruler of Orissa. During the battle he seized an image of child Krishna and brought it to Vijayanagara as war trophy. He then built this temple to consecrate the image. An inscription describing the conquest and the consecration of this temple on 16 February 1515 by Krishnadevaraya is found on a slab in front of this temple. Built in the centre of a courtyard, the temple possesses a sanctum, an antechamber, an ardha mantapa, a circumambulatory passage, a pillared hall with three entrances and an open pillared mantapa, in addition to a number of other shrines for the attendant deities. The sanctum is at present empty. The image of Balakrishna showing him as a child holding butter in the right hand is now resting in the Government Museum at Madras.

The inner sides of the entrance exhibit beautifully sculptured Apsaras standing on mythical animals and holding scrolls filled with panels showing the ten incarnations of the lord. Like all major temple complexes, Krishnapura, a suburb, is developed around this temple. The bazaar in front is now a lush paddy field.