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Kerala culture has had a profound impact on Malayalam cinema. The state's rich literary tradition, folk music, and art forms have inspired many filmmakers. The , a traditional dance-drama form, has been a significant influence on the industry, with many films incorporating its elements. The Ayurvedic tradition, which originated in Kerala, has also been featured in several films.

Today, Malayalam cinema continues to thrive, with a new generation of filmmakers pushing the boundaries of storytelling and creativity. The industry has seen a surge in films that blend traditional elements with modern themes and styles. , Sreekuttan , and Lijo Jose Pellissery are some of the notable filmmakers who have made significant contributions to the industry.

The 1960s to 1980s are often referred to as the Golden Age of Malayalam cinema. During this period, filmmakers like , P. Padmarajan , and John Abraham made significant contributions to the industry. Their films showcased the complexities of human relationships, social issues, and the struggles of everyday life. This era also saw the rise of comedy films, with actors like Mammootty and Mohanlal becoming household names.

Malayalam cinema has gained international recognition, with films like and "Sudani from Nigeria" receiving critical acclaim globally. The industry has also seen a rise in collaborations with international filmmakers, actors, and producers. The Streaming platforms have also played a significant role in making Malayalam films accessible to a global audience.

In the 1990s and 2000s, Malayalam cinema witnessed a significant shift with the emergence of new wave cinema. Filmmakers like , Sibi Malayil , and Kamal Haasan experimented with new themes, narratives, and storytelling styles. This era saw a focus on more realistic and socially relevant films, which resonated with audiences.