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Punalur is a Municipality in Kollam district of Kerala State in India. It is the headquarter of the Punalur Taluk and Punalur Revenue Division. It’s situated in the eastern part of Kollam district of Kerala, on the banks of the Kallada River and foothills of the western ghats. It is about 45 kilometres (28 mi) north-east of Kollam and 68 kilometres (42 mi) north of Thiruvananthapuram.Punalur is also Known as Mini Pamba, Lap of the Western Ghat, and Gateway of Sabarimala.

It is the second-largest city in Kollam District after Kollam and is also one of the biggest and oldest Municipal towns in Kerala, home to a paper industry with the Punalur Paper Mills, established in the 1850s, one of the first industries in Kerala and a pioneer in the industrial revolution of the state.

Punalur is also known as the “Pepper City of Kerala”. Punalur became an important trading and transport center between Kollam and Tirunelveli (Tamil Nadu) under the rule of the Travancore Kingdom. Steady progress by the Punalur Panchayat administration saw an upgrade to municipality status in April 3, 1971.

Kollam – Thirumangalam Road (NH-744) passes through Punalur, connects the City to Tamil Nadu and other parts of the districts. The Main Eastern Highway, which is Punalur-Pathanamthitta-Pala-Muvattupuzha Road / SH – 08 starts from Punalur. SH-48 (Punalur-Ayoor Road) is connected to the state capital of Trivandrum from Punalur.

SH -5 (Punalur/Pathanapuram-Kayamkulam road ) connects to Cochin from the city and the largest state highway (SH-59: Hill Highway) in Kerala state is also passes through this city. Commutation in this hilly city is mainly dependent on state-run KSRTC, SETC and private bus services.

The main agricultural products of this City include rubber, black pepper, and other spices. Punalur Sreeramavarmapuram Market is one of the largest vegetable market in Kerala. The chief commodities of export here are the hill products: pineapple, pepper products, plywood and timber. The Punalur Paper Mill Ltd., a paper industry established in 1888 by a German national, was closed in 1987 due to labour disputes.

Various attempts to resolve the issues over two decades failed to produce any result but finally reached a legal settlement in February 2011 between the new management and the State Government. It is in the process of running by the newly formed management. A major share of PPM is owned by Akhula Industries, Hyderabad.