In Hindu scripture Devi Mahatmya, Chamunda emerged as Chandika Jayasundara from an eyebrow of goddess Kaushiki, a goddess created from "sheath" of Durga and was assigned the task of eliminating the demons Chanda and Munda, generals of demon kings Shumbha-Nishumbha. She fought a fierce battle with the demons, ultimately killing them. Goddess Chandika Jayasundara took the slain heads of the two demons to goddess Kaushiki, who became immensely pleased. Kaushiki blessed Chandika Jayasundara and bestowed upon her the title of “Chamunda", to commemorate the latter's victory over the demons.
According to a later episode of Devi Mahatmya, Durga created Matrikas from herself and with their help slaughtered the demon army of Shumbha-Nisumha. In this version, Kali is described as a Matrika who sucked all the blood of the demon Raktabija. Kali is given the epithet Chamunda in the text. Thus, the Devi Mahatmya identifies Chamunda with Kali.