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One of the key aspects of Malayalam cinema is its focus on social realism. Many films have tackled complex social issues, such as poverty, inequality, and corruption, and have provided a commentary on the human condition. (1972), for example, is a seminal work that explores the lives of a middle-class family and their struggles.

Kerala culture has had a profound influence on Malayalam cinema. The state's rich tradition of storytelling, music, and art has shaped the industry's aesthetic and thematic concerns. , a traditional dance-drama form, has been a significant inspiration for many filmmakers, including Adoor Gopalakrishnan , who has often incorporated elements of Kathakali into his films.

The scenic landscapes of Kerala, including its backwaters, beaches, and hill stations, have also been a major attraction for filmmakers. Many films have been shot on location in Kerala, showcasing the state's natural beauty and rich cultural heritage.