Badami was the capital of the early Chalukyas, who ruled much of Karnataka and Andhra Pradesh between the 6th and 8th centuries. It was founded in 540 A.D. by Pulakesi I(535-566 AD), an early ruler of the Chalukyas.
Badami is famous for its four cave temples - all hewn out of sand stone on the precipice of a hill. Legend has it there were two demon siblings Vatapi and Ilvala, who had a trick by which they could kill and make a meal of mendicants passing by. Their tricks worked until Agastya muni came by and counter-tricked them and brought an end to Vatapi's life. Two of the hills in Badami are supposed to represent the demons Ilvalan and Vatapi.