Benaulim is a census town in South Goa district in the state of Goa, India. It is a beach town a little south of Margao in Goa, India. It is a town of immense natural beauty, located along the scenic south goa coastline. Legend has it that Lord Parashurama, incarnation of Lord Vishnu, shot an arrow from the Sahyadri mountains in adjacent konkan; the arrow (Baan in Sanskrit) landed at the site of this present-day town.
Thus it was known as Banahalli or Banavalli (the village of the arrow) before the advent of the Portuguese. Ancient Banavalli had a magnificent temple dedicated to Shiva and Parvati, known as Katyayani Baneshvar ruins, of which can be still found in the village. The deities were shifted to Aversa in Northern Kanara (modern Uttara Kannada) in the 16th century.
Benaulim's main market is located at Maria Hall which is about 2 km away from the beach. Benaulim has 2 beaches first Benaulim beach which is the prime beach and secondly Vaddi beach which is less congested and developed than Benalim beach.