The sacred place where श्री राम built an आश्रम and lived for some time with सीता and लक्ष्मण during their exile in the forests. There is a story about पञ्चवटी in the कम्ब रामायण .

पञ्चवटी is on the southern bank of the गोदावरी . Five वटवृक्षस् (banyan trees) stand here in a circle and therefore, the place got the name पञ्चवटी . There is a legend about these banyan trees. Once five गन्धर्व youths encircled the sage अगस्त्य in the forest as a sport and prevented him from moving towards any direction. The enraged sage cursed them to stand in the same position as banyan trees. Thus by obstructing the movements of a divine man they were forced to remain without movement as trees. Before they took the form of trees they begged the sage for deliverance from the curse. अगस्त्य said, "One day श्रि राम with his wife and brother will come and stay in an आश्रम built in your midst. Their holy presence will give you salvation from my curse."

श्री राम and लक्ष्मण when they came to that forest decided to build an आश्रम in the centre of the circle formed by the five banyan trees. लक्ष्मण started to build the hermitage. At first he cut down one of the trees standing tall and straight and to the surprise and astonishment of all the fallen trunk of the tree disappeared and there in its place lay the dead body of a demon youth. It was the body of शम्भुकुमार , son of शूर्पणखा . He was doing penance there when श्री राम came there with सीता and becoming lustful at the sight of सीता he stood there as a tree. It was he who was cut down by लक्ष्मण .

श्री राम understood the thing that happened. He then explained to सीता and लक्ष्मण many things about the frauds and deceits of the demons. After that they built their hermitage there and dwelt there for a long time. (Araṇya Kāṇḍa, Kamba Rāmāyaṇa) .