In 1882 Periyapalayam was a pilgrimage centre and the annual feast in honour of Our Lady of Mercy was celebrated by the Capuchin Fathers. In 1906 the Church was struck by lightning and ceased to function. The decree erecting Periyapalayam as a new parish was issued by Archbishop of Madras-Mylapore, Dr R Arulappa on 10th June 1966. The Immaculate Conception Sisters from Madurai and the Rosarian Sisters had established their convents in this Parish with the support of the Archdicoese of Madras-Mylapore.