Located in the village of Ramachandrapuram in East Godavari District, it is about 26 km from Kakinada and 48 km from Rajahmundry and also called as "Dakshina Kashi" (Southern Banaras). It is described as a very holy place that is next only to Benaras, the holiest of Shiva temples in the country.

The temple is one of most ancient shrines of India and possesses one of the most important 'Shaiva Aramas'. The Inscriptional evidences in the temple indicate its origin to 11th century, when the Chola king Rajaraja was reigning at Rajahmundry.

Draksharama is one of the five Panchaarama temples and legend says that the Shivalingam held by the demon Taraka, splintered into five pieces and fell at the five Panchaaraama kshetrams one of which is Draksharama

The temple is an architectural marvel whose grand appearance and Linga’s unique height attracts many devotees. Thousands of pilgrims attend the 'Bhimesvaraswami Kalyanam', which is celebrated for five days during January-February

The place is also sacred to the Muslims. The mosque and the tomb of Syed Shah Bhaji Aulia are greatly revered by them.