A study on butterfly diversity of lateritic biotopes of Kavvayi River Basin was conducted during February 2013 to January 2015. The study area represents diverse habitats that include sacred groves, laterite hills, riparian ecosystem, and kanams. A total of 140 species butterflies were recorded from the study area, among which the highest number of butterfly species were from the family Nymphalidae (48 species), followed by Hesperiidae (32 species), Lycaenidae (27 species), Papilionidae and Pieridae with 16 species each and 1 from the family Riodinidae. The present study revealed the faunal richness of the unique ecosystems and microhabitats in lateritic biotopes in terms of butterfly diversity. The study also highlights conservation significance of the area which is under severe human pressure including mining, habitat fragmentation and change in the land-use system.