The Bene Ephraim claim descent from the Tribe of Ephraim, and say that they traveled from Israel through western Asia: Persia, Afghanistan, Tibet and into China for 1,600 years before arriving in southern India more than 1,000 years ago. They hold a history which they say is similar to that of the shift of Afghan Jews and Persian Jewish, Bene Israel, Bnei Menashe in the northeastern Indian states of Mizoram and Manipur, who received recognition in 2005 from the Chief Rabbinate of Israel.

There are certain Oral Traditions among Bene Ephraim: traditions known as Cavilah Traditions. There are about 450 ancient halakhic customs, habits and Hebrew Cultural Elements among them that continued since prehistoric times and Exodus.

Their leader, Shmuel Yacobi, went to Jerusalem in the 1980s and became convinced they were of Jewish descent. Because of the long period in which the people were not practising Judaism, they did not develop any distinctly identifiable Judæo-Telugu language or dialect. Since the 1980s, about fifty families in Kotha Reddy Palem have studied Judaism, learned Hebrew, and built an operating synagogue. They celebrate all Jewish holidays, and often use their Torah.