All the Ritwiks in the kingdom of King Śvetaki had developed eyesight problems since they were continuously conducting Yajnas for the King. When Śvetaki wanted to start another 100 year Yajna, they refused to participate and asked him to approach Śiva to be a Ritwik. .

King Śvetaki offered ghee in the Agni continuously for 12 years on the advice of Śiva so that he can obtain a Ritwik capable of conducting a 100 year Yajna. Agni lost his lustre because of drinking so much ghee.

Agni had lost his lustre because of drinking too much ghee offered by King Śvetaki. He approached Brahmā for a solution.

Brahmā advised him that Khāndava forest is the dwelling of the enemies of Devas. By consuming this entire forest, Agni would regain his lustre. He also advised Agni to seek the help of Arjuna and Krishna for help in consuming the forest. Therefore he approached Krishna and Arjuna for help in his endeavour.

Arjuna told Agni that even though they have the required strength, they do not have the weapons to fight the forest protected by Indra. Arjuna asked Agni to provide him and Krishna arms. Agni in turn asked Varuṇa.

Varuṇa offered the chariot used by Chandra with the flag of Hanumān, Ghāndiva bow and two quivers that will never go empty for Arjuna. He also offered Sudarśana Chakra and Kaumodakī gadhā for Krishna.

As per Skanda Purāṇa and Śiva Purāṇa, Bhagavān Śiva provides the Sudarśana Chakra to Krishna. As Sri Krishna is born as a human, Agni is the instrument for handing over the Sudarśana Chakra to Sri Krishna.

Takshaka was not in the forest when Arjuna and Krishna burnt the Khāndava forest. His wife and his son Aśvasena were in the forest. Takshaka's wife decided to swallow Aśvasena and ascend upwards so that they can escape together. Arjuna noticed this and cut off the head of the mother.

Indra wanted the help his friend's son Aśvasena to escape and he made Arjuna lose consciousness for a moment. In that moment Aśvasena escaped. Krishna and Arjuna cursed Aśvasena for this deceit that he would never earn fame.

Mayan sought protection from Arjuna and Arjuna promised to protect him. Therefore, both Agni and Krishna also spared Mayan.

Mandapālaka chanted the name of Agni and asked him to spare his four children.

Mandapālaka was a Rishi who did immense Tapas. He reached the world of Pitṛs due to the Tapas. Still he did not get the benefit of his Tapas. He reached Kāladeva and asked the reason why he was deprived of the benefit of his Tapas. The deva advised him that a human is always born in debt and they dissolve the debt with Tapas and with progeny.

Since Mandapālaka did not have progeny he was being denied the benefit. To obtain an offspring, he took the form of a Śārṅgaka bird which is known to produce offsprings quickly. He and Jaritā, a ladybird, produced four Śārṅgaka birds as offsprings. During the fire in the Khāndava forest, these birds were spared by Agni Deva.

Indra was impressed by the valour of Arjuna and Krishna and how they overcame all the devas. He offered each of them a boon that they could obtain something that ordinary mortals cannot.

Arjuna asked Indra for all his arms. Indra offered to give all his arms when Krishna is satisfied with Arjuna's friendship.

Indra was impressed by the valour of Arjuna and Krishna and how they overcame all the devas. He offered each of them a boon that they could obtain something that ordinary mortals cannot.

Sri Krishna asked Indra that his friendship with Arjuna should be everlasting.

After burning the forest for 15 days, Agni was fully satisfied. He granted a boon to Arjuna and Krishna that they shall be competent to travel to whichever place they choose to go to.

Agni was pleased with the eulogy that the Śārṅgaka birds heaped on him. Also, he remembered the promise he made to their father Mandapālaka. Therefore he spared them.

Being the Ātma in every being is His Pāramārtika Svaroopam. At the same time, as a giver of fruits of action for all beings is His Saguṇa svaroopam.