A Pokémon with Telepathy avoids damaging moves used by its allies. This includes attacks with multiple targets (such as Discharge), as well as attacks exclusively targeting an ally with Telepathy (such as Thunderbolt). However, it is not protected from its allies' status moves (such as Teeter Dance or Confuse Ray).
When Telepathy prevents an attack from hitting, the message "<name> avoids attacks by its ally Pokémon!" will be displayed.