Terekhol Fort was built by the ruler of Sawantwadi, Maharaja Khem Sawant Bhosale. The fort is situated on the northern bank of the estuary of the Terekhol River. In 1746, the fort was conquered by Dom Pedro de Alameida, who was a Portuguese viceroy. During this period, the fort along with the church was rebuilt. In 1825, the fort served as the base for armed revolt against the Portuguese force.
This revolt was headed by Dr. Bernardo Peres da Silva, who was the first Goan born Viceroy of Goa. However, he failed to defeat the Portuguese and the fort was again conquered by them. After Portuguese left the fort, it was converted into a heritage hotel, which also houses a church, known as the St. Anthony Church. The church is open for public only on certain occasions like annual feast, which is held during the month of May.