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The 1954 film Neelakuyil (The Blue Cuckoo), directed by P. Bhaskaran and Ramu Kariat, is often cited as the birthplace of this distinct identity. It dealt with caste discrimination and untouchability—issues that were tearing apart Kerala’s agrarian society. While Hindi cinema was still scripting romantic fantasies, Malayalam cinema was already tackling the , which had swept the state in 1957.

The cultural significance of Malayalam cinema extends beyond the screen as well. The industry has played a vital role in promoting Kerala's culture, traditions, and tourism. Films like "God's Own Country" (2014) and "Take Off" (2017) have showcased Kerala's stunning natural beauty, rich cultural heritage, and warm hospitality to a global audience. This has contributed significantly to the growth of tourism in Kerala, with many visitors drawn to the state by the cinematic portrayal of its picturesque landscapes and vibrant culture.

Kerala’s cuisine (appam, beef curry, karimeen pollichathu) is a character. In Sudani from Nigeria (2018), the bonding between a Malayali football coach and Nigerian players happens over chaya (tea) and parotta . In Malik (2021), the protagonist’s power is symbolized by the communal iftaar feast. Food represents the secular, cosmopolitan heart of Malabar.