It is believed that the Pandya kings of Tamil Nadu fled to Pandalam in the face of an attack from Cholas[14] and settled there in the land they bought from Kaipuzha Thampan, a landlord. The Pandya dynasty had provinces on either sides of the Western Ghats. The King of Pandalam helped Marthanda Varma to conquer the Kayamkulam province. In return for this help, Marthanda Varma did not attempt to attack and conquer Pandalam during the expansion of his kingdom. The princely state of Pandalam had extended up to Thodupuzha in Idukki district once. Pandalam was added to Travancore in 1820. Before the formation of Pathanamthitta district, Pandalam was in Mavelikara taluk of Alappuzha district.
Pandalam Municipality is the civic body that governs Pandalam. It is surrounded by other local bodies including Kulanada panchayath, Thumpamon panchayath, Pandalam Thekkekara panchayath and Nooranad panchayat in Alappuzha district on one side.[15] This is the first ever municipality in Southern Kerala where BJP is in power.
Pandalam Palace, placed on the banks of Achankovil river, was home to the royal family of Pandalam.The royal family of this palace enjoys a significant position in the history of Kerala. It is believed that they have descended from the Pandya kings of Madurai. Pandalam Palace carries not just historical importance, but a considerable religious magnitude as well. According to legends, Lord Ayyappa was born to the King of Pandalam.There is a temple on the banks of Achankovil river which is dedicated to Lord Ayyappa. The sacred ornaments of Lord Ayyappa are carried from Pandalam Palace to Sabarimala as a grand procession three days prior to the makaravilakku festival
