The European colonial empires like British, French, Dutch, and Portuguese established maritime trade with India during the early 17th century.

The Danish East India Company was established in Copenhagen, Denmark in 1616 and a mission was sent with Admiral Ove Gjedde (1594–1660 CE).

[1][2] Ove Gjedde signed a deal with the Thanjavur ruler king Raghunatha Nayak (1600–34) in 1620 in spite of resistance from the Portuguese.

The treaty signed in a golden leaf manuscript is maintained in the Danish royal archives in Copenhagen.

During the middle of the 18th century, the commercial importance of the town declined and the centre of textile production moved to Serampore in the state of Bengal.

It is built in Danish style, characterized by large halls, columned structures, high ceilings and projecting drapery.

The fortification could not withstand an attack by regular military forces, but acted as a protection for the citizens of the settlement against predatory cavalry raids.

[28] The Tranquebar Association, formed in 2001, with the help of the Tamil Nadu State Archaeological Department and the Danish Royal family, restored the South end of the fort with the same kind of material like brick and black stone, used during the original construction.

[23] There was a project planned by the government of Tamil Nadu to lay stones along the shores to protect the fort and the Masilamaninathar Temple in Tharangambadi from erosion.

As a part of the first phase of the project, cobble-stoned pathways were laid and ornamental cast iron street lamps were installed in the path around the fort.

Environmental protection measures, like restraining movement of heavy vehicles around the fort to maintain the highest atmospheric ozone concentration, were also implemented.

[31][32]A factory was established soon after the fort was constructed and it minted coins that bore the initials TB or DB, indicating Dansborg.

[8][34] A Tamil-Latin dictionary containing 9,000 words was compiled there by a medical missionary named Friedrich Koenig in 1778, whose source letters are stored in the royal archives.