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Directors like G. Aravindan and Adoor Gopalakrishnan led a parallel cinema movement. Thamp (1978) and Mathilukal (1990) (based on Vaikom Muhammad Basheer’s prison memoirs) intertwined art with political prisoner experiences.

Malayalam cinema has not only reflected Kerala culture but has also influenced it in significant ways. The film industry has played a crucial role in shaping the state's cultural identity, both within India and globally. Malayalam films have won numerous national and international awards, introducing Kerala's culture and traditions to a wider audience.

Malayalam cinema began with J.C. Daniel’s silent film Vigathakumaran (1928) . While other Indian regions focused on mythological epics, Daniel chose a family drama, setting a precedent for "social cinema" that remains a hallmark of the industry.