This most sacred spot is located at about 8 km. from the main temple at a height of 2830 feet above the mean sea level. It is the highest peak of Srisailam. The Skanda Purana proclaines that a mere glance of this Sikharam frees the human soul from the fitters of re-birth – “Srisaila Sikharam Drustva Punarjanma Na Vidyathe”. – There is a temple dedicated to Sri Veera Shikara Swamy and locally known as Sikhareswara Swamy. This temple in as ancient stone structure and historically the Reddi Kings have constructed a flight of steps to this in the year 1398 AD and also a Pushkarini (Tank) at this place. This place gives a panoramic view of the entire temple of Srisailam including the meandering river Krishna.