The study examines about the red sand dune deposit locally designated as teri deposits; it is an omnipresent geomorphologic feature present in the coastal region of Thoothukudi and Ramanathapuram districts of Tamil Nadu, India. One of the inland teri sand dune outcrops is located around the Kuthiraimozhi village of Thoothukudi district in Tamil Nadu, India. Textural, mineralogical and geochemical studies were carried out in the teri sediments and its compact sandstone outcrops. The sediments are moderately sorted to well-sorted and finely skewed nature which indicates that fluvio-marine depositional environment. Geochemical analysis results of major, trace and rare earth elements for teri deposits help to predict the provenance, weathering status, depositional environment and climate. The geochemical study reveals that the sediments were derived from marine and non-marine sources. Teri sediments are geochemically classified as lithic arenite or wacke. Petrography and X-ray diffraction analysis reveal the predominance of quartz and feldspars along with the accessory minerals like ilmenite, rutile, garnet, magnetite, hematite, zircon, diopside, hypersthenes and biotite. Mineralogical observation illustrates that the teri sediments have originated from the weathering of felsic and mafic source rocks. The Chemical Index of Alteration (CIA) values of sediments represent moderate to the high status of weathering conditions in the source area. The depositional environment indicates that the sediments are fine-grained with high maturity index. Despite that the sediments are formed by fluvio-marine sources, the reddening character in the teri deposits is due to oxidation and leaching of iron-bearing minerals by percolating surface water from high rainfall and groundwater fluctuation of the aquifer under arid and semi-arid climate conditions.