Located 15 km north-west of Kalpeta the Banasura Sagar Dam is the largest earthen dams in India and the second largest in Asia. It is bound on one side by the magnificent hills of Western Ghats and the dam impounds a large expanse of water. The verdant landscape and the scenery are heavenly to look at and can soothe the nerves of even the strained traveller.

This dam has many Islands with the reservoir, which is very unique. These islands were formed when the dam submerged the surrounding areas and these can be reached by boats. The view of the banasura hills in the background is simply splendid.

The dam impounds the Karamanathodu tributary of Kabini River and it is a part of the Indian Banasurasagar Project consisting of a dam and a canal. This project was commissioned in 1979 and the goal of the scheme is to support the Kakkayam Hydro electric project and satisfy the irrigation and drinking water needs of the region. 

This dam is a treat for all trekking enthusiasts and the Banasura Sagar dam is an ideal starting point for the hikes into the surrounding scenic mountains of Wayanad. The dam with its huge expanse of cool, clean water and is an important tourist and picnic spot. Kerala Hydel Tourism is promoting this dam in a big way and there are many water sport activities available in the reservoir.