This most beautiful scene spot is located about 4 km from Srisailam. Tradition records that Bhagavan Adisankara performed penance at this place and composed the famous ‘Sivanandalahari’ here. This spot is in a narrow valley approached by a flight of steps where subterranean streams of pure water with musical sounds reverberating the surroundings. These streams are known as ‘Phaladhara-Panchadhara’ and these signify their origin from the fore head of God Siva, the Phaladhara (Phala=fore head, dhara=stream) and denotes the five aspects of Siva, the Panchadhara (Pancha=five, dhara=stream). The water from this stream flows at all seasons uninterruptedly.