2 Kms. further ahead from Colva is Benaulim. This is the spot where the shaft of Parasurama fell to earth, known in Sanskrit as Banali and later corrupted by the Portuguese to Benaulim. This is more peaceful and serene than Colva and the best thing about Benaulim is that it is still rather undiscovered by domestic tourists even though it is a fishing beach. It gets fairly crowded in the evenings and on weekends, it gets crowded with local visitors who get off buses about a kilometer away and pour onto the beach. Just out of site beyond the palm trees is the Benaulim village. One wouldn't generally expect a beach to have strings of mythology attached to it but Benaulim is one beach that does. This is said to be the place where the arrow of Lord Parsurama landed when he created the state of Goa. The main attractions on this beach are the Dolphin Cruises offered here, which are reasonably priced and are definitely worth it as the chances of spotting dolphins prance about are very high. The tranquil and charming village of Benaulim is also famous for its rosewood furniture and the carvings that one finds on these pieces are really noteworthy. Situated atop a hill just beyond the village is the church of St. John the Baptist. This church is a wonderful example of typical Goan Christian architecture.

The Beach at Benaulim is very quiet and pleasant. The best thing about Benaulim is that it is still unexplored by the domestic tourists even though it is a fishing beach. The evenings are pretty crowded on weekends. It gets fairly crowded with Indian visitors.

The Church of St John the Baptist is situated on a hill beyond the village and is worth to visit. On the arrival of the monsoon, Feast of St John the Baptist (Sao Joao) is celebrated as a thanksgiving.