Not far from the church of Sant’Agostino, the church of the Madonna della Sbarra was built in 1625, located outside the walls of the castle in the place where the toll booth once stood (hence the “bar"), above a shrine considered miraculous, for for this reason the community of Panicale with a letter to the Bishop of Chiusi obtained the permission to build the church and to have the administration of the same. It has a Tuscan-style facade entirely in brick while the cornices and jambs of the three doors are carved in pietra serena. Inside it is divided into three naves, dominated in the center by the main altar in marble flanked and surmounted by four large baroque-style caryatids. Above the main altar is the canvas of the “Madonna with child", the image contained in the shrine considered miraculous. In the same church there is also another painting entitled “Holy family" and attributed to the painter El Greco, dating from 1572-1575.
The Church of the Madonna della Sbarra has recently been restored and the upper floors have been used as a museum of sacred vestments.
