The present-day Koothali Panchayat area was once part of the ancestral property of Koothali Mooppil Nair, Vallabhan Chathan, who held the title of Sthanapathi, and Godheraman, the Avinjattu Naduvazhi, in the erstwhile Kurumbranad Taluk. This vast region, extending up to Wayanad, was historically known as the Koothali Estate.

Approximately 40% of the geographical area consisted of paddy fields, where rice was cultivated during the months of Kanni and Makaram. Kanni cultivation (Modan) was also practiced in the homesteads. Coconut, arecanut, pepper, tapioca, banana and various other inter-crops were cultivated. Based on the crops grown, the land was classified as Nanja, Punja and Thottam, and taxation was imposed accordingly.

Vallabhan Chathan, the last Naduvazhi of the matrilineal ruling family, passed away without heirs. Consequently, the properties without legal heirs were vested in the British Government in 1932 under the law known as Attaladakkam, which provided for the confiscation of heirless properties. The roots of the Naduvazhi dynasty can be traced to the Tamil Brahmin community. While the residences of Naduvazhis were generally known as Kovilakam or Kottaram, the residence of the Naduvazhi at Koothali was known as Madham, possibly because of this connection.

British laws that denied the rights of the people led to widespread protests. When ordinary people were denied their traditional right to enter the forest after the Naduvazhi's hunting ceremonies, identify land for Punam cultivation and cultivate it, this opposition developed into open struggles.

The renaissance activities carried out here as part of the anti-untouchability movement awakened self-awareness and collective strength among the oppressed sections of society. Modern education helped initiate social interactions based on self-respect and human dignity instead of privileges granted through the customs and rituals of those in authority. Thus, society gradually began to discover new paths.

The period of the Naduvazhis was also one in which ancient art forms received considerable encouragement. There are different interpretations regarding the origin of the place name Koothali. Some believe it evolved from Koothattupalli, while others derive it from the words Koothu and Aali. Nevertheless, the association of the name Koothali with Koothu, an ancient art form, indicates the close relationship this region has had with the arts since ancient times.

Artisans belonging to various traditional occupations lived in the villages. Occupational divisions were based on caste. Naturally, various undesirable practices associated with feudal rule existed here as well. Untouchability was particularly strong.

Despite the severe restrictions imposed under feudal rule, the influence of the national movement also emerged here. The late Arakkandi Narayanan Nair, T. V. Unnikuttan Nair, and K. Krishnan Nair, who was the headmaster of Koothali School, were among the early Congress workers. Narayanan Nair took the initiative in establishing the first library and reading room in Koothali.

As part of Congress activities, Krishnan Nair worked to encourage Harijan students to attend school and undertake similar initiatives, which resulted in his losing his job at Koothali School.

The protest against the government ban on Punam cultivation, which farmers had traditionally practiced on the fertile lands of Koothali Estate, developed into the historically significant Koothali Struggle.

The earliest educational institutions were the traditional Ezhuthupallis run by local teachers (Nattashans). The first elementary school in Koothali was established in the 1930s.

The first bus service from Koothali to Kozhikode, operated by C. C. Motors (short for Cheruvath Cheruvattat) owned by Karuvoth Kunji Krishnan Nambiar, began around the middle of the 1940s.

The first communist peasant movements in Koothali emerged around the medical centre of P. K. Vaidyar at Kalpakassery Poyil (Paithoth). U. K. Panicker, Edakodath Kunhiraman Nair, Cherukkakkara Kumaran Vaidyar, and P. K. Vaidyar were prominent activists of these movements.

Dr. K. G. Adiyodi, who served as Kerala's Finance Minister and Chairman of the Public Service Commission, was a distinguished personality who enhanced the reputation of Koothali.

P. T. Usha, the Olympic athlete, is a native of Koothali by birth.

Koothali has also produced several renowned practitioners who demonstrated excellence in Ayurvedic medicine. Naduvilakandi Chappan Nambiar, Cherukkakkara Kumaran Vaidyar, C. V. Chekotti Vaidyar, C. V. Kelappan Vaidyar, and K. P. Chappan Vaidyar made valuable contributions to Ayurveda, while P. C. Kunjikrishna Nair and O. C. Gopalan Nair contributed significantly to the field of treatment for poisoning.

Today, Ayurvedic treatment has largely given way to allopathic medicine.

The Koothali Weavers' Cooperative Society, established in 1953, is a traditional industrial institution functioning on a cooperative basis.

With the spread of urbanisation, the expansion of markets, and unprecedented progress in transportation and other technological fields, the standard of living also improved.

Educational and Cultural History

Many years ago, Koothali had traditional village schools (Kudippallikkoodams) run by local teachers, in addition to single-teacher schools and elementary schools. Kallode G. L. P. School, one of the oldest schools in the Panchayat, is still functioning.

The only high school in the Panchayat, Koothali High School, was established in 1983. In addition to formal educational institutions, tutorial colleges also function in the Panchayat as centres of informal education.

For technical education and higher studies, children from the Panchayat depend mainly on the nearby towns of Perambra, Koyilandy, Vadakara and Kozhikode.

Koothali is a region that can claim the heritage of a very ancient civilisation. This is evident from the umbrella stones (Kudakkallu) that still survive as monuments of the Megalithic Age. The ancient remains discovered here provide indications about the life and social practices of the people of that period.

Over the course of time, through numerous stages of transformation, the early civilisation gradually developed into feudal society and subsequently into urbanisation.

The roots of the Naduvazhi dynasty can be traced to the Tamil Brahmin community. While the residences of Naduvazhis were generally known as Kovilakam or Kottaram, the residence of the Naduvazhi at Koothali was known as Madham, possibly for this reason.

The period of the Naduvazhis was one in which ancient art forms received significant patronage. There are different interpretations regarding the origin of the name Koothali. Some believe that it evolved from Koothattupalli, while others believe it originated from the words Koothu and Aali. The association of Koothali with Koothu indicates the region's deep connection with the arts from ancient times.

Several distinguished Kathakali artists taught and studied here. Guru Kunchu Kurup and Chemancheri Kunhiraman Nair deserve special mention.

Alongside the classical arts that flourished under the patronage of the Naduvazhis, Koothali also had a rich tradition of folk art forms among the oppressed communities.

As in other feudal administrations of Kerala, autocratic rule, the luxurious lifestyles of the ruling authorities and their social consequences also existed in Koothali. On one side developed a social structure rooted in the caste system, social relationships based on practices such as untouchability, and a chain of exploitation and oppression arising from a power-and-wealth system determined by land ownership. On the other side, classical temple arts received patronage and flourished.

At the theatre associated with Koothali Madham, temple art forms such as Koothu, Kathakali and dance were traditionally taught and performed.

A unique feature of the Madham is the concept of the Shadow Deity (Chayabhagavathi) installed there. This concept is distinctly different from other forms of deity worship. The theatre at Koothali is said to have had pillars that did not receive the shadow of the traditional Kalivilakku (ritual lamp), which may also be connected with this belief.

The origin of the place name Koothali may have come from Koothattupalli (Palli referring to royalty), or it may mean a place where Koothu flourished, or even “Aali of Koothu” (Aali meaning companion). Whatever the interpretation, all these explanations point towards the rich cultural heritage of Koothali, rooted in its artistic traditions.

Alongside this tradition, the folk arts of ordinary people also flourished. Folk ritual arts such as Theyyam, Thira, Thottam, Njattippattu and Kolkali songs, as well as martial arts such as archery and sword fighting, were actively practiced here.

The Njattippattu songs and Parayathudi performances that gave rhythm to the days and nights of Koothali until the last decades of the twentieth century are continuing links in this tradition.

Festivals are not merely annual gatherings of devotees; they are also annual occasions for the collective participation of the entire community. Festivals played an important role in bringing men and women together for trade, strengthening social interaction and cooperation, and maintaining relations with neighbouring areas.

The festival venue of Panakkad Sree Payyormala Bhagavathi Temple was a renowned centre of gem trading, known even in distant regions.

Other important temples in the Panchayat include Koothali Kammoth Vishnu Temple, Palayatt Sree Krishna Temple, Purayankode Shiva Temple, and Koothali Theru Ganapathi Temple. Most of these temples are several centuries old.

Important sacred groves (Kavus) are mainly located at Koolikkavu, Paithothkavu, Kudakuruthi, Thidangazhikkal, and Purayankottummal.

The cultural life of Koothali underwent transformation through several stages, including the end of Naduvazhi rule, the influence of British rule, and the awakening created by the national renaissance and modern education.

Changes began to appear in all areas of social life. Many old beliefs were gradually rejected. The importance of festival celebrations declined, while commercial needs could increasingly be met at any time.

Changes were also seen in clothing, housing construction and even food habits. At the same time, groups and organisations emerged to lead cultural activities.

During the 1970s, an organisation called Friends Arts Theatres became active in the field of arts and provided a platform for many artists to develop. This contributed to several achievements for Koothali in amateur theatre.

However, Koothali's cultural heritage was also strongly reflected in its achievements in the field of sports. The annual Rural Sports Meets held in Koothali, which even surprised the Kozhikode District Amateur Athletic Association, are an example.

The contributions of P. V. K. Nambiar, K. O. Balakrishnan, V. V. Appu Nair, Damu Koothali, and Kallatt Narayanan deserve special mention.

During the same period, “Intelligentsia”, established under the leadership of P. Balachandran Master, brought meaningful changes to the cultural sphere.

The “Khorana Quiz Club”, formed with the participation of school students, was one of the first initiatives of its kind. Intelligentsia, which organised both Kathakali performances and poetry gatherings, made significant contributions to organising young people, directing them towards constructive activities and promoting reading.

Koothali has also produced several outstanding players in volleyball at the district level. The people of Koothali embraced volleyball with great enthusiasm