Established in 1958 by Sri Damodaran Vaidyar at Karaparambu, Kozhikode,Sri Damodaran Vaidyar hails from a well known family of physicians having a long heritage of Ayurvedic tradition. With his immense knowledge acquired from his ancestors, he has been able to bring up this institution as one of the finest and authentic hospitals for Ayurvedic treatment in the country.
In 1980 a medicine-manufacturing unit was started at Narikkuni, Kozhikode to cater to the needs of the vaidyasala. This unit has its own herbal garden at Narikkuni to meet the requirement of raw materials. Rare herbals are procured through traditional Adivasis from different forests also.