King Valagambahu got a Stone Carver to do a rock-cut Buddha Statue in cave no.1, but was not happy with his work. So, he requested God Sakkra to send the Heavenly Craftsman called God Visvakarma. He appeared as a human being and asked for permission from the King to do the statue. The King refused, as he was not aware who he was. In the night Visvakarma had completed the entire statue 47 feet long and in the morning the King saw it and was very happy, as it was the best rock-cut statues of the Buddha.

Five more Buddha statues are found in the cave and the statue of Ananda, the Chief disciple of the Buddha is near the foot of the Buddha.

A statue of God Vishnu is kept in a corner of the cave with a separate entrance to it.

The paintings of this cave may be the oldest at Dambulla.