This quiet town, 15km north of Karaikal, or 63km east of Kumbakonam via Mayuram, was once the headquarters of the Danish East India Company - a little known Danish colony in India. In 1620, the Company purchased a small piece of land on the Coromandel Coast from Raghunatha Nayaka; four years later Tranquebar, as this territory came to be known, was transferred to King Christian IV. Until 1807, when it was taken by the British, this settlement was the principal headquarters for Danish commercial activities in Southern India. By the time it was restored to Denmark in 1814-45, Tranquebar had dwindled into insignificance.

Tarangambadi preserves its European character due to the 17C-18C houses, churches and fort that still stand here. The settlement is entered from the west through the brick archway of the Town Gate. The Danish coat of arms and the date 1792 are displayed on the pediment. The road which leads from the Gate to the sea is lined with houses, many with porticos and round-headed windows. Here stands the New Jerusalem Church of the Evangelical Lutherans. Its main entrance is framed by a decorated triangular gable framing a crown, the royal emblem and the date 1718. The interior has four equal transepts roofed by pointed tiled roofs. The Church is associated with Bartolomeus Ziegenbalg, the first Lutheran missionary in Southern India and the translator of the New testament into Tamil, which he printed on a newly introduced press. He died in 1719; his grave is set into the floor in front of the altar. The cemetery outside contains other interesting tombs. The Church of Zion nearby, founded in 1701 but subsequently remodeled, was the main place of worship for Europeans. A bell tower, topped by a shallow dome and a miniature obelisk, rises over the entrance. The long nave is roofed with a pointed brick vault.

A large open square is laid out beside the Bay of Bengal. The north side is occupied by the Governor's Bungalow, a dilapidated building with an imposing colonnaded verandah. Opposite, on the south side of the square and directly overlooking the ocean, is Dansborg. This fort was begun in 1620 by Ove Gedde, the first Danish Governor. and was subsequently strengthened on several occasions. It consists of a quadrilateral compound bounded by broad ramparts, entered on the north through a pedimented arched gate. The east side of the fort is occupied by a long low building with sloping walls and small windows. A central upper chamber has a small tower. The vaulted rooms of the lower storey serve as a small Museum (closed on Fridays), housing a collection of maps, documents, weapons and other artifacts pertaining to Danish history.