Banasura Sagar Dam is another tourist attraction in Kalpetta. It's the largest earth dam in Asia and is the largest of its kind. The dam is situated at the foot of Banasura Hill, which is the second highest peak in Wayanad district. It is part of the Banasura Sagar Project, which is a joint effort between the Government of Kerala and the Central Water Commission. The main purpose of the project is to control floods in the region and to provide irrigation water to nearby areas.
Small islands are also visible in the dam's reservoir during the monsoon. They form when the flooded reservoir submerges the surrounding areas too. The vast expanse of crystal clear water dotted with islands is a photographer's dream.