Capel Aelhaiarn, dedicated to St Aelhaearn, was mentioned in documents of 1291. The parish of Llanaelhaearn was united with the parish of Gwyddelwern in 1550, and the chapel may have fallen out of use at this time. The site is depicted on historic (1901 and 1912) Ordnance Survey mapping. No remains were visible in the 1690s, when only a yew tree was noted on the site. The yew tree was noted again in 1913. The village name, Pandy'r Capel (the chapel fulling mill), may be associated with Capel Aelhaiarn.

Sources include:
Beverley Smith, J, Beverley Smith, Ll, 2001, History of Merioneth II, 342
Ordnance Survey, 1899, second edition 25inch
Ordnance Survey, 1912, third edition 25inch

N Vousden, RCAHMW, 15 June 2012