The Chapel of Telaulim is dedicated to Our Lady of Mount Carmel. It was built in 1783 and was consecrated on 21st March 1783 when the Holy Eucharist was celebrated for the first time.

According to the villagers, this chapel was founded by Fr. Manuel Antonio Azavedo, the first chaplain and his two brothers, and as such the chapel belonged to the Azavedo family of Telaulim.

Our Lady of Mount Carmel Chapel has been served by many Chaplains. The Statue of Our Lady of Carmel was presented by one of the Chaplains, Fr. Paixão Alemão.

The feast of Our Lady of Mount Carmel is celebrated on 16th July all over Goa, but at Telaulim Chapel the feast is celebrated on the third Sunday of October with great pomp and solemnity. Telaulim Chapel is one of the biggest chapels of the parish with a beautiful residential house. It also has the infrastructure like cemetry to one day be converted into a parish.