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The first Malayalam film, "Balan," was released in 1938, marking the beginning of a new era in Kerala's cultural landscape. Initially, films were produced in collaboration with Tamil and Telugu industries, but over time, the industry developed its unique identity. The 1950s and 1960s saw the emergence of a distinct Malayalam film movement, led by pioneers like G. R. Ravindranath, S. A. Dhamodaran, and Kunchacko.

Malayalam cinema has had a significant impact on Indian cinema as a whole. The industry's innovative storytelling, cinematography, and music have influenced filmmakers across India. The success of Malayalam films like "Take Off" (2017) and "Angamaly Diaries" (2017) has also inspired a new wave of regional cinema.

Today, Malayalam cinema is more diverse and experimental than ever. Filmmakers like Lijo Jose Pellissery, Adoor Gopalakrishnan, and Kamal Haasan have continued to push the boundaries of storytelling, exploring themes like social inequality, politics, and human relationships. The industry has also seen the emergence of new talent, including actors like Mohanlal, Mammootty, and Dulquer Salmaan, who have gained a massive following.