In the 1870s Fr. Gregory, bought 5 acres of land and built a small Church in honor of St.Joseph.About Shrine That church was renovated through 1891 to 1892. On those days this church is under the Kaavalkinaru parish. In 1938, Brothers of Sacred Heart start a school in Panagudi. Panagudi was established as an independent Parish on 24 December 1939. Fr.Soosainather was the first parish priest of this church. Parish priest's House was built in his time. In 1945, convent of the Sisters of Servites of Mary established under the guidance of Fr.Devota. In 1947, Fr. Remigius founded a 36 feet stone pillar for flag hoisting. In 1954, Fr. Xavier started the Legion of Mary. In 1962, Fr. Lourdhumani made the Decorative Car for Saint Joseph. Fr. Devasagayam Fernando (1969–72), formed the Welfare Association of Saint Joseph. In the period of Fr. Sengolmani(1972–81), the current church was built and consecrated by Bishop of Tuticorin Rev. Amalanather. In 1990, Fr. Paneerselvam built the grotto of Our Lady of Vailankanni. The same year Sisters of St. Anne start an English medium school in Panagudi. In 1995, Fr. Devasagayam raised the statue of Sacred Heart at the top of the Church tower and he built a stage called Valanaar Kalaiyarangam. In 2001, Fr. John Bosco celebrated the Silver Jubilee of this church. Saint Joseph church was elevated to a Shrine status on 5 December 2001 when Fr. Isidore was the parish priest. Fr. Thomas is the present Parish Priest.
