Ambabai Temple (also known as Mahalaxmi Mandir) is an important Hindu temple dedicated to Goddess Lakshmi, who resides here as Supreme Mother Mahalakshmi and is worshipped by locals as Ambabai. Goddess Mahalakshmi is the consort of Lord Vishnu and it is customary among Hindus to visit Tirumala Venkateswara Temple, Kolhapur Mahalakshmi Temple and Padmavathi Temple as a yatra (pilgrimage). It is believed that visiting these temples as a pilgrimage helps achieve moksha (salvation).

The temple of the goddess Mahalakshmi was built by Karnadeva in 634 CE Chalukya reign.[2] Mounted on a stone platform, the murti of the crowned goddess is made of gemstone and weighs about 40 kilograms. The image of Mahalakshmi carved in black stone is 3 feet in height. The Shri Yantra is carved on one of the walls in the temple. A stone lion (the vahana of the goddess), stands behind the statue. The crown contains a five headed snake. Further, she holds a Matulinga fruit, mace, shield and a pānapātra (drinking bowl). In Lakshmi Sahasranama of Skanda Purana, Goddess Lakshmi is praised as "Om Karaveera Nivasiniye Namaha" means "Glory to the Goddess who lives in Karaveera" and as "Om Sesha Vasuki Samsevyaa Namaha" means "Glory to Goddess who is served by Adi Sesha and Vasuki".