The first Malayalam film, "Balan," was released in 1937, marking the beginning of the industry. The early years saw films like "Nirmala" (1938) and "Marthanda Varma" (1938), which were based on social issues and mythology. The 1950s and 1960s saw the rise of notable directors like G.R. Rao and P.A. Thomas, who made films that were both critically acclaimed and commercially successful.