This Ability effect may be in need of research. Reason:Does Telepathy protects ally from Pollen Puff and Present? You can discuss this on the talk page.
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.
The Pokémon reads its teammates' minds and won't take damage from its teammates' moves! For example, even if a teammate uses Earthquake , the Pokémon won't be hit by it!
In the manga
Pokémon Adventures
Henry's Oranguru, Fanguru, was revealed to have Telepathy as his Ability.
Colress's Beheeyem was revealed to have Telepathy as his Ability.
Trivia
Telepathy is the most common Ability to have as a Hidden Ability.