Malayalam cinema has played a significant role in promoting Kerala's cultural heritage, both within India and internationally. Films like Gurukulam (1997), Kotta Bommali (2006), and Kunjikundan (2019) have explored the state's traditions, folklore, and mythology, introducing them to a wider audience.

Kerala culture has been a significant influence on Malayalam cinema, with many films reflecting the state's traditions, festivals, and customs. The famous Onam festival, for instance, has been depicted in numerous films, showcasing the vibrant traditions and rituals associated with it. Similarly, the traditional Kerala dance, Kathakali, has been featured in several films, highlighting the state's rich artistic heritage.

The annual International Film Festival of Kerala (IFFK) has become a significant event in the world of cinema, attracting filmmakers and film enthusiasts from around the globe. Held in Thiruvananthapuram, the festival showcases a diverse selection of films from India and abroad, providing a platform for emerging filmmakers to showcase their work.

Malayalam cinema has had a significant impact on Kerala's tourism industry, with many films showcasing the state's scenic beauty and cultural heritage. The movie Periyar (2007), for instance, highlighted the beauty of Periyar Wildlife Sanctuary, attracting tourists to the region.

Malayalam cinema has been known for its diverse themes and trends, often reflecting the social and cultural realities of Kerala. Social issues like poverty, inequality, and corruption have been addressed in films like Swayamvaram (1972), Adoor Gopalakrishnan's Swayamvaram (1972), and Lijo Jose Pellissery's Angamaly Diaries (2017).