Punalur is a quiet town resting on the banks of river Kallada between the borders of Kerala and Tamilnadu.  It is predominantly an agricultural town with the cultivation of pineapple, coconut trees, plantain, and spices like pepper. The town is very well-known owing to its paper industry, one of the pioneering in India, set up way back in early 1850 by the Travancore government. Plywood and timber industries are also very flourished here.

Punalur has many pretty spots that attract tourists. A 19^th century suspension bridge (monument of national importance) built by the British, Agasthyamalai, Shenthurney forest and Palaruvi waterfalls are among them. With natural surroundings and gorgeous landscapes, Punalur offers activities such as trekking, hiking and mountain biking.