Kerala’s geography is a character in itself. The rains (known as Manjil Kaalam ), the narrow thodu (canals), and the traditional naalukettu (ancestral homes) set the stage for psychological dramas.

Similarly, the state's cuisine, music, and dance forms have also been showcased in many Malayalam films. For instance, the popular Kerala dish, sadya , has been featured in several films, including Chemmeen (1965) and Adoor Gopalakrishnan's Mathilukal (1989). The traditional Kerala music and dance forms, such as Velayattam and Theyyam , have also been featured in many films.

Malayalam cinema is defined by its "Middle Stream"—a unique blend of artistic integrity and commercial viability.