The naming of Mangunan Village was closely related to the legend of the search for burial ground by Sultan Agung, the ruler of the Islamic Mataram Kingdom in the 17th century. A prophecy said, the sign of the fragrant land which later became the royal cemetery of Mataram Kingdom was the appearance of a peacock. Once upon a time during his search, Sultan Agung saw a peacock perching on a rock. He thought it was the fragrant land in question, but when he approached the peacock, it flew away. There was doubt in Sultan Agung’s heart so that he continued his search for where it flew. The stone where the peacock perched then called Watu Simangu and became the origin of the name Mangunan Village, which derived from word Mangu-Mangu (doubt in Javanese). Nowadays, Mangunan has developed into a natural tourism area, including Pinus Pengger, Becici Peak, Rumah Literasi (Literacy House), Pintu Langit Lembah Dahromo (Dahromo Valley Sky Gate), Lintang Sewu Hill, Pinus Asri, Pinus Sari, Seribu Batu Songgo Langit (Thousand Stones of Songgo Langit), Panguk Hill and Mojo Hill.
Penamaan Padukuhan Mangunan erat kaitannya dengan legenda pencarian lokasi Makam oleh Sultan Agung, Penguasa Kerajaan Mataram Islam di abad 17 Masehi. Penanda keberadaan tanah wangi yang kelak menjadi pemakaman raja-raja Mataram tersebut adalah munculnya seekor burung Merak yang hinggap di tanah wangi tersebut. Suatu ketika Sultan Agung melihat Burung Merak hinggap di sebongkah batu. Beliau mengira bahwa di sanalah tanah wangi yang dimaksud. Namun saat mendekati Burung Merak tersebut kembali terbang. Muncul keragu-raguan dalam hati Sultan Agung sehingga membuatnya meneruskan pencarian kemana Burung Merak itu terbang lagi. Batu yang dihinggapi tersebut dinamakan Watu Simangu dan menjadi cikal bakal nama Padukuhan Mangunan yang berasal dari kata Mangu-Mangu atau Ragu-Ragu. Kini Mangunan tumbuh berkembang menjadi kawasan wisata alam yang meliputi Pinus Pengger, Puncak Becici, Rumah Literasi, Pintu Langit Lembah Dahromo, Bukit Lintang Sewu, Pinus Asri, Pinus Sari, Seribu Batu, Bukit Panguk dan Bukit Mojo.