The first Malayalam film, "Balan," was released in 1938. However, it was not until the 1950s and 1960s that Malayalam cinema gained momentum. The 1970s and 1980s saw the rise of socially relevant films, known as "parallel cinema," which tackled issues like poverty, inequality, and social injustice. Some notable filmmakers of this era include Adoor Gopalakrishnan, K. G. Sankaran Nair, and P. Chandrakumar.

Films like Kammattipaadam (2016) exposed the land mafia’s destruction of Dalit settlements in the shadow of development. Ee.Ma.Yau (2018) used the death of a poor Christian fisherman to satirize the theatrics of funeral rituals, exposing class divides even within the same religion. The Great Indian Kitchen (2021) became a cultural grenade, laying bare the sexual politics and patriarchal filth hidden in the traditional "ideal" household.

Malayalam cinema began with , known as the father of the industry, who produced the first silent film Vigathakumaran in 1928. Unlike many other Indian film industries, Malayalam cinema often prioritizes literature and script-driven storytelling over grand spectacles.

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: Unlike many larger Indian industries, Malayalam cinema frequently explores complex social issues, including land reforms, Gulf migration, and the decay of feudal systems.

In the last 25 years, the industry has undergone a radical transformation. The "New Generation" movement has moved away from superstar-centric narratives to embrace "hyper-realism" and diverse production styles.