While the cemetery remained in use until recent times, the circular enclosure itself likely marks the location of an early ecclesiastical site, though no visible remains of ancient structures survive today. The shape alone suggests religious significance; circular enclosures are characteristic features of early Irish monastic settlements, where they served to demarcate sacred ground from the secular world beyond.

Historical maps from the late 19th and early 20th centuries mark the location of Tetunny Church about 100 metres south of the burial ground, on lower ground near the river. However, no physical traces of this church have ever been found at the mapped location. Archaeological evidence suggests it would have been far more typical for such a church to stand within the circular enclosure itself, on the higher ground where the burial ground now lies, following the common Irish pattern of churches occupying prominent positions in the landscape.

The religious significance of this area extended beyond the burial ground and possible church site. To the southeast once stood Tetunny holy well, a sacred spring that would have drawn pilgrims and local people seeking healing or blessings. Though the well has since disappeared, its former presence, combined with the circular enclosure and burial ground, paints a picture of a small but significant religious complex that served the local community for centuries, possibly dating back to the early medieval period when Christianity first took root in this part of Donegal.