The school is situated on the campus of Loreto Convent, Darjeeling. The school was started for the education of local girls. Mother M. Baptista Murphy, gathered 7 little girls on 3rd October 1926, on the feast of St. Teresa of Lisieux and began the school on the verandah of the boys’ school since there was no room in the presbytery. The authorities of Darjeeling recognized St Teresa School as Primary School in 1939. In 1956 the school was raised to the status of High school. Sister Christine Gurung was appointed as the Principal of St Teresa School and in 1972 the school was upgraded to Higher Secondary school.
The Catholic girls from far way places are accommodated in Prabhat Tara hostel. This school is only for girls. Sr Anima Kujur, is the Principal of the school.