In the present paper, we report the indigenous development of a neutron-sensitive thermoluminescent dosemeter (TLD) based on CaSO4:Dy Teflon TL disc. The study includes indigenous development of a neutron dosemeter and its response in terms of operational quantity to different energies of neutrons under various irradiation conditions. It was found that the thermal neutron sensitivity of the CaSO4:Dy Teflon neutron disc is about one-third of TLD-600. However, the thermal neutron sensitivity with respect to CaSO4:Dy Teflon gamma disc is about 42 times for in-air irradiation and about 84 times for on-phantom irradiation condition. This newly developed neutron dosemeter can be used as a routine TLD with a slight change in the design of the TLD badge system in the mixed fields of gamma and neutrons of energy up to 500 keV for radiation workers engaged in nuclear fuel cycle operation and other applications.