The first Malayalam film, "Balan," was released in 1938, marking the beginning of a new era in Kerala's cultural landscape. Initially, Malayalam cinema was heavily influenced by Indian mythology and folklore, with films often depicting mythological stories and legends. However, as the industry grew, filmmakers began to focus on more realistic and socially relevant themes, reflecting the changing values and aspirations of the Malayali people.

Malayalam cinema has played a vital role in representing and preserving Kerala's rich cultural heritage. Films often showcase the state's vibrant traditions, including its music, dance, and festivals. For example, the annual Thrissur Pooram festival is beautifully depicted in the film "Gurukripa" (2005). Moreover, Malayalam cinema has also explored the complexities of Malayali identity, particularly in the context of migration and diaspora. Films like "Aparan" (1991) and "Devarmagan" (2000) examine the experiences of Keralites living abroad, highlighting the tensions between tradition and modernity.

Malayalam cinema has consistently engaged with social issues, sparking important discussions and debates. Films like "Sreedharante Onam" (2008) and "Nokketha Doorathu Kannum Nattu" (2013) addressed pressing concerns like mental health and women's empowerment. The industry has also produced a number of films that challenge social norms and conventions, such as "Innale" (2000), which explores same-sex relationships.