According to oral tradition and the ancient text 'Keralol-Pathi', it is the warrior saint Parasurama, who is considered to be the founder of Kalari-Payat in South-India. Parasurama is said to have brought 36,000 brahmin families into South-India and settled them in 64 villages. These brahmin families were proficient in the use of weapons, which was taught in 108 Kalaries, established by Parasurama in these villages. It is possible that the already existing ancient Dravidian martial traditions, with the Aryan martial arts, formed the present Kalari-Payat as it is still practiced in South-India, today with little change, for the past 1500 years.

The universal concept of Srishti, Sthithi and Samhara (creation, preservation and destruction) is metaphysically encoded throughout the training with the internal association of Shiva-Shakti (male female) principle. The Exercises in Kalari-Payat are very closely related to yoga-postures, which predominantly affects the body and the internal organs on a gross-level and the Nadis (nerve-channels) and the energy-centers on a subtle level. Unlike yoga, even though the poses have similar energetical effect, the exercises are practiced dynamically by constantly moving through different directions to cultivate a high level of aerobic endurance, muscular and skeletal strength, coupled with single point focus, which is a basic necessity during combat. During the exercises, the subtle nerve-channels or Nadis, among them the major Nadis, Ida, Pingala and Sushumuna, are continuously stretched and purified of all their clogged impurities, so that the breath or Prana or Vayu (Vital force) can travel through the nerve channels unhindered. This effect of prana gives the practitioner super normal physical and mental strength during a life to death combat.

Even before the advent of the Aryans, the martial tradition of South-India, was kept alive by the Buddhists through their monasteries known as Sha-lais. The most prominent Sha-lai of ancient Kerala from the 5th to the 9th century was the Kandaloor Sha-lai, which is situated in the Trivandrum district of South-Kerala. The place where the ancient Sha-lai was situated is now known as Sha-lai Bazaar. It is possible, that the system of training practiced at the Sha-lai were taken by the Buddhist Monks traveling to China and other south-east-Asian countries, and probably in China the monastery of Shao-lin (Sha-Iai?) had been founded. However, it would be interesting to note that there are exercises practiced in South-India, which were probably practiced in ancient China also, and known by the name of China-Adi and China-Kuthu (Chinese Boxing) in South-India, even today.