The Thalakaadu curse has established itself in the folklore as a miracle since the early part of 16th century because of two strange events visible even to date: (i) Thalakaadu, an historically vibrant city, is now being submerged under sand dunes several meters deep, and (ii) the Mysore royal family have faced problem in having a rightful heir to the throne since 1600s. Both these events linked to an apparent curse by a pious lady have defied logic. Based on the data from diverse sources and field studies, I have reconstructed the possible chronology of events of this acclaimed miracle. I argue that the Thalakaadu phenomenon represents an ecological disaster unintentionally wrought on to a vibrant civilization at this place and in this sense the curse per se is an intelligently inserted story as an overlay. Using this example I discuss the possible process through which the miracles or myths of this kind survive in a society