Malayalam cinema is deeply rooted in the culture and traditions of Kerala. The industry has played a significant role in shaping the state's cultural identity and promoting its rich artistic heritage. Many Malayalam films have explored themes related to Kerala's history, culture, and social issues, such as the communist movement, the E.M.S. Namboodiripad's land reform, and the cultural practices of the region.

Kerala hosts several cultural festivals and events that celebrate its rich artistic heritage. The annual International Film Festival of Kerala (IFFK) is one of the most prestigious film festivals in India, showcasing a diverse selection of national and international films. The festival has become a platform for emerging filmmakers to showcase their talent and for established filmmakers to premiere their latest works.

The 1990s saw a new wave of cinema in Malayalam, characterized by experimental storytelling, innovative cinematography, and socially relevant themes. Filmmakers like A. K. Gopan, K. M. Unni Nair, and Sibi Malayil made significant contributions during this period. Movies like "Sibi Malayil's Bharatham" (1991), "K. M. Unni Nair's Gowndamudi" (1993), and "A. K. Gopan's Udyanapalakan" (1992) pushed the boundaries of storytelling in Malayalam cinema.