According to some accounts Tanuku was the capital of Tarakapuri, the kingdom of Tarakasura, king of Asuras (demons). Tarkasena is often referred to as Tarakasura ("Taraka" + "Asura"). Asuras are demons, and Tarakasena was likely made a demon after his defeat in a great war between him and Lord Kumaraswamy (Subramania swamy), the son of Lord Shiva and Parvathi. He happened to be the son-in-law of Indra who was invaded by Tarakasura over an insult meted out to him.

Many villages derive their name from this war. The place where Lord Kumaraswamy landed on earth is now called Komaravaram. Illindra Parru is the place where Indra stayed, and the place where all the angels stayed is now known as Velpuru (Place of Angels). The place where Uraga Raju resided is known as Undrajavaram. The place where the goddess Vijayalakshmi resided is known as Mahalakshmi Cheruvu, and the place where the holy priests resided is today called Vipparru. Thus Tanuku’s history goes way back to ancient Vedic times.

Many of the surrounding villages have some historical significance and quite a few ancient monuments can be seen there. In older times the present-day Palangi was known as "Poolangi" (Stall of Flowers) and Chivatam was known as "Srivatam" (the Financial Centre). Paidiparru was known as "swarnagaram" (Place of gold), and the stall of gems once called "Ratnala Angi" is probably Relangi today. The paddy repository of the kingdom is now Vadlooru.

Tanuku is the birthplace of one of the greatest and among the very first Telugu poets of all time, Adikavi Nannayya. He is reputed to have conducted a large Yagna (sacrifice) under a Jammi tree. He also translated first three Parvas (Cantos) of the Mahabaratha from Sanskrit into Telugu.

Butta Bommalu is a typical folk dance, popular in Tanuku region. In this particular dance, the dancers wear masks of different characters and entertain people with their delicate movements, accompanied by non verbal music.