The area now known as Ottapalam was formerly known as Ayirur Thekkummuri Desam. The present-day Ottapalam, Pattambi and Cherpulassery areas were part of the medieval Nedunganad kingdom. Nedunganathiripad was the main ruler of Nedunganad. The headquarters was at Makovilakam near Kodikunnu, Chembulangad. Nedunaganad was ruled by the Nairs of Kavalappara, Thrikkadeeri, Kannambra, Vattakkavil Perumbada under the leadership of Nedunganathiripad. Ottappalam was the administrative area of Thrikkadeeri Nair. Its north side starts at Ayirur-Vadakkummuri near Mannarkkad and ends at Ayirur-Thekkummuri. After passing Ayirur-Thekkummuri, crossing the 'Ottapalam of Kanniyampuram river', then it comes the place to pay a toll for Kavalappara Nair.

Around 1487 AD, the region was annexed to the kingdom of the Zamorin of Calicut. The Zamorin appointed his chieftain at Kavalappara Kovilakam. After the long rule by the Zamorin of Calicut, it became a part of the Kingdom of Mysore around 1766. It came under the rule of East India Company with the Treaty of Seringapatam in 1792. The British formed the Malabar District and built their headquarters at Kozhikode. The headquarters of North Malabar was at Thalassery and that of South Malabar was at Cherpulassery. The headquarters of South Malabar was later changed to Ottapalam. The railway came and the place was renamed as Ottappalam. The South Malabar Special Court started functioning at Ottappalam by 1880. Thus the name Ottappalam became familiar. Gradually, the name Ayirur-Thekkummuri was confined to the land records.

Before the Indian Independence, present-day Kerala state was scattered in South Canara and Malabar Districts of British India and two princely states namely Cochin and Travancore. The first All-Kerala conference of Indian National Congress was held in 1921 at Ottapalam, which was the then capital of South Malabar, on the bank of the river Bharathappuzha, which also later demanded a separate state for the Malayalam-speaking regions in future Independent India. Kerala Pradesh Congress Committee was formed in that conference. Before that, Malabar District, Cochin, and Travancore had separate Congress committees. Ottapalam is located right in the middle of Kerala state.

Ottapalam is also called The New Film City of Kerala.

Road

The Palakkad-Shoranur (Kulappully) State Highway passes through the town. Government buses as well as private bus services operate between Ottapalam and other major towns, such as Thrissur, Palakkad, Mannarkkad, Perinthalmanna, Pattambi, Guruvayoor, Thiruvilwamala, Chelakkara through the Ottapalam-Mayanur Bridge, inaugurated on 22 January 2011.

Rail

The town is served by the Ottapalam railway station, which lies between Palakkad and Shoranur Junction on the Jolarpettai–Shoranur line. Seventy-four Indian Railways trains stop at the station.