The temple derives its name from the statue of Lord Rama that is black. The literal translation of kalaram means black Rama. The sanctum sanctorum also houses the statues of goddess Sita and god Lakshmana. Thousands of devotees visit it every day.
The temple was funded by Sardar Rangarao Odhekar, and was built around 1788. It was said that Odhekar had a dream that the statue of Rama in black colour was in the Godavari River. Odhekar took the statue from river and built the temple.
The main entrance has a Lord Hanuman deity which is black. There is also a very old tree that has Lord Dattatreya's footprint impressions marked on a stone. Pilgrims visit the Kapaleshwar Mahadev temple near the Kalaram Temple.
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