The 2nd Aadi Jyotirling of Mallikaarjun is in Shree Shailam, AP, India. Shree Shailam is located in Kurnool district of Aandhra Pradesh. This whole area is full of forests of Kadalee (banana), Bilva trees, mountain ranges and Paataal Gangaa (Krishnaveni) River. Here Shiv is worshipped with jasmine, Mallikaa flowers. Shiv waits here for his son Kaarttik who left Kailaash after a disagreement with him.

Shail Mallikaarjun’s holy place is located on the banks of River Krishnaa. Here River Krishnaa is in the form of Paataal Gangaa (underground spring). Lakhs of devotees take a holy dip here and then go for the Darshan of the Jyotirling Sthal Poornam: When Shiv and Paarvatee decided to find suitable brides for their sons, Ganesh and Murugan argued as to who is to get wedded first. Lord Shiv bade that the one who goes round the world (Pradakshinaa) would get married first. By the time Lord Murugan could go round the world on his Vaahan, Lord Ganesh went round his parents 7 times (for according to Shaastra, by doing Pradakshinaa of one's parents is equivalent to going once round the world (Bhoo Pradakshinaa).

Lord Shiv got Siddhi and Buddhi, the daughters of Vishwaroop married to Lord Ganesh. When Kumaar Kaarttikeya returned to Kailaash after completing his trip around the earth, he heard about Ganesh’s thread marriage from Naarad. This angered him. In spite of being restrained by his parents, he touched their feet in obeisance and left for Kraunch Mountain. Paarvatee was very distraught at having to be away from her son, implored Shiv to look for their son. Together, they went to Kumaar, but, Kumaar went away a further three Yojan, after learning about his parents coming after him to Kraunch Mountain. Before embarking on a further search for their son on each mountain, they decided to leave a light on every mountain they visited. From that day, that place came to be known as Jyotirling Mallikaarjun. It is believed that Shiv and Paarvatee visit this place on Amaavasyaa (No Moon day) and Poornimaa (full Moon day), respectively. The place where Lord Shiv and Paarvatee stayed came to be known as Shree Shailam.

Another Version - When Shiv and Paarvatee did not succeed to find their son, the came back to Kailaash Parvat. So Vrishabh Dev, Shiv Paarvatee's ride bull, did Tapasyaa to Mahaadev and then they appeared as Mallikaarjun and Bhramarambaa at this holy spot. In a tiny hole inside the Temple of Devi Bhramarambaa, one can still hear the buzz of bees as Devee assumed the form of bees all over her body and killed Mahishaasur.

--Lord Raam is also said to have installed a Sahastra Ling and
--Paandav have too set up a Panch Paandav Ling in the Temple surroundings, and
--Aadi Shankaraachaarya is reputed to have scripted his well known work named "Shivaanand Laharee" at this Temple.

Pauraanik History of Shree Shailam
Once, a princess named Chandraavatee decided to go to the jungles to do penance and meditation. She chose Kadalee Van (banana forest) for this purpose. One day, she witnessed a miracle. A Kapilaa cow was standing under a Bilwa tree and milk was flowing from all of its four udders, sinking into the ground. The cow kept doing this as a routine chore everyday. Chandraavatee dug up that area and was dumb founded at what she saw. There was a self-raising Swaayambhoo Shiv Ling. It was bright and shining like the Sun rays, and looked like it was burning, throwing flames in all directions. Chandraavatee prayed to Shiv in this Jyotirling. She built a huge Shiv Temple there. Lord Shankar was very pleased with her. Chandraavatee went to Kailaash wind borne. She received salvation and Mukti. On one of the stone-inscriptions of the temple, Chandraavatee’s story can be seen carved out.

Visiting this Jyotirling not only blesses one with innumerable wealth, but also name and fame and fulfils all the desires.