The history of Malayalam cinema dates back to the 1920s, when the first silent film, , was released in 1930. However, it was not until the 1950s that Malayalam cinema began to gain momentum, with films like Nirmala (1938) and Shyama (1941). The 1950s and 1960s saw the emergence of a new wave of filmmakers, including Adoor Gopalakrishnan , A. K. Gopan , and Kunchacko , who contributed to the growth and diversification of Malayalam cinema.

The 1980s are widely regarded as the of Malayalam cinema. During this era, directors like Adoor Gopalakrishnan , Padmarajan , and Bharathan pioneered "middle-stream cinema"—a blend of artistic depth and mainstream appeal.

Perhaps the greatest cultural export of Malayalam cinema is the Lungi (or Kaily ). It is the uniform of the Malayali male. In many Indian film industries, the hero is always dressed in tailored suits or designer kurtas. In Malayalam films, the hero lounges in a cheap lungi, a mundu, or a pair of frayed shorts.