The fort was originally built by the Raja of Sawantwadi, in the 17th century. The Bhonsles of Sawantwadi kept a sizeable fleet of native vessels which sheltered in the Tiracol River. The fort initially consisted of 12 guns, a barrack and a chapel. Portuguese defeated the Sawantwadi forces and Terekhol was finally surrendered on 23 November 1746 to the Portuguese. Presently, in a state of ruins, Fort Terekhol has been converted into a hotel- the Fort Tiracol Heritage. A Church for the Holy Trinity was constructed in the fort courtyard, but it is not open to the general public except on certain occasions.