A Chandra observation of the Large Magellanic Cloud supernova remnant DEM L241 reveals an interior unresolved source which is probably an accretion-powered binary. The optical counterpart is an O5III(f) star making this a High-Mass X-ray Binary (HMXB) with orbital period likely to be of order tens of days. Emission from the remnant interior is thermal and spectral information is used to derive density and mass of the hot material. Elongation of the remnant is unusual and possible causes of this are discussed. The precursor star probably had mass > 25 solar masses