At a distance of 1 Km from Yaganti Bus Station, Agasthya Guha (cave) is the cave where Sage Agastya performed the Penance for Lord Shiva.

While travelling in South India, Sage Agastya came across this place and he wanted to build a temple for Lord Venkateswara. However, the statue that was made could not be installed as the toe nail of the deity got broken. Sage Agastya was upset over this and he performed a penance for Lord Shiva. When Lord Shiva appeared, he asked the Lord the reason why he could not install Lord Venkateswara statue. Lord Shiva replied that the place suits Shiva better as it resembles Kailash. Agastya then requested Lord Shiva to give the darshan devotees along with Parvathi Goddess as Lord Uma Maheswara in a single stone, which Lord Shiva obliged.

This guha can be reached by climbing very steep steps.