The holy town of Pandalam, perhaps second only to Sabarimala in sanctity and significance, is situated 15km from Pathanamthitta. According to legends it is at Pandalam that Lord Ayyappa, the presiding deity of Sabarimala had his human birth as the son of the Raja of Pandalam. The Valiyakoikal Temple, believed to be constructed by the Pandalam Raja, on the banks of river Achenkovil has been modelled on the Sabarimala shrine. Pilgrims usually stop here to worship before proceeding to Sabarimala. Three days prior to the 'Makaravilaku' festival, the sacred ornaments of Sree Ayyappa are taken in a procession from Pandalam to Sabarimala.

Pandalam is also well known for its educational and health care centres. It has a lot of educational institutions ranging from reputed schools to Post Graduate, Ayurveda, Medical and Engineering Colleges.