Story of Kakabhusundi is found in Tulsidas’s Ramacharitamanas. He is believed to have had darshan of Lord Shiva and this makes him a divine character. As per Ramarcharitamanas, the home of Kakabhusundi was in the Himalayas. When Lord Ram was born on earth, he came to Ayodhya to witness the child form of Bhagavan Ram. Child form of Rama was his desired deity.
Kakabhusundi took several births before finally he got human form. He roamed in the hermitages of various Rishis seeking knowledge. Once he reached the ashrama of Lomasa Rishi who taught him the principles of nirguna Brahman (God without form and attributes).
But Kakabhusundi was adamant that he be taught about Saguna Brahman (God with form and attributes).
Lomasa Rishi tried to convince Kakabhusundi about the greatness of nirguna worship but he was not ready to accept the teachings. The Rishi got angry and cursed him to be born as a crow.
Lomasa Rishi regretted cursing his student and taught him the principles of Saguna Brahman.
Kakabhusundi did not change his form of crow, as he wanted to keep the form in which he gained the knowledge of Saguna Brahman.
Kakabhusundi is said to be still living on earth and will live forever.