Badami was the capital of the early Chalukyas, from the 6th to the 8th century AD. The city was then known as Vatapi.
The name came from the legend of Sage Agasthya who destroyed the demons Vatapi and Ilvala here. As the story goes, Vatapi and Ilvala were demon brothers. Vatapi had a boon from the gods that no matter how many pieces his body was cut into, when called, they would join and he would be whole and alive. Taking advantage of this, the brothers tricked all sages who passed by their region. They would invite them for a feast, an invitation which could not be refused. Then Vatapi would turn into a ram and Ilvala would cut him up and serve him to the guests (in those days, even sages ate meat).