Tamil cinema is the segment of Indian cinema dedicated to the production of motion pictures in the Tamil language, the main spoken language in the state of Tamil Nadu. It is nicknamed Kollywood, a portmanteau of the names Kodambakkam—a Chennai neighbourhood with a high concentration of film studios, and Hollywood.

The first Tamil silent film, Keechaka Vadham, was directed by R. Nataraja Mudaliar in 1918. The first Tamil talking feature film, Kalidas, a multilingual directed by H. M. Reddy was released on 31 October 1931, less than seven months after India's first talking motion picture Alam Ara. Tamil cinema has been noted for its advanced narratives and diverse films, with several productions in the 1990s and early 2000s cutting across ethnic and linguistic barriers. Such films include Roja (1992), Bombay (1995), Indian (1996) and Enthiran (2010). Tamil cinema has since produced some of the most commercially successful actors, directors and films of Indian cinema.

By the end of the 1930s, the legislature of the State of Madras passed the Entertainment Tax Act of 1939. Madras (now Chennai), then became a secondary hub for Hindi cinema, other South Indian film industries, as well as for Sri Lankan cinema. Over the last quarter of the 20th century, Tamil films established a global presence, enjoying strong box office collections among Tamil-speaking audiences in Sri Lanka, Malaysia, and Singapore. Tamil films are also distributed throughout the Middle East, Oceania, Europe, North America, parts of Africa, and Japan. The industry also inspired independent filmmaking among Tamil diaspora populations in Sri Lanka, Malaysia, Singapore, and the West.

M. Edwards first screened a selection of silent films at the Victoria Public Hall in Madras in 1897 during the British Raj. The selected films all featured non-fictional subjects; they were mostly photographed records of day-to-day events. The film scholar Stephen Hughes points out that within a few years there were regular ticketed shows in a hall in Pophams Broadway, started by one Mrs. Klug, but this lasted only for a few months. Once it was demonstrated as a commercial proposition, a Western entrepreneur, Warwick Major, built the first cinema theatre, the Electric Theatre, which still stands. It was a favourite haunt of the British community in Madras. The theatre was shut down after a few years. This building is now part of a post office complex on Anna Salai (Mount Road). The Lyric Theatre was also built in the Mount Road area. This venue boasted a variety of events, including plays in English, Western classical music concerts, and ballroom dances. Silent films were also screened as an additional attraction. Swamikannu Vincent, a railway draftsman from Tiruchirapalli, became a travelling exhibitor in 1905. He showed short movies in a tent in Esplanade, near the present Parry's Corner, using carbide jet-burners for projection. He bought the film projector and silent films from the Frenchman Du Pont and set up a business as film exhibitor. Soon, he tied up with Pathé, a well-known pioneering film-producing company, and imported projectors. This helped new cinema houses to sprout across the presidency. In later years, he produced talkies and also built a cinema in Coimbatore.

To celebrate the event of King George V's visit in 1909, a grand exhibition was organised in Madras. Its major attraction was the screening of short films accompanied by sound. A British company imported a Crone megaphone, made up of a film projector to which a gramophone with a disc containing prerecorded sound was linked, and both were run in unison, producing picture and sound simultaneously. However, there was no synched dialogue. Raghupathi Venkaiah Naidu, a successful photographer, took over the equipment after the exhibition and set up a tent cinema near the Madras High Court. With this equipment, he screened the short films Pearl Fish and Raja's Casket in the Victoria Public Hall. When this proved successful, he screened the films in a tent set up in Esplanade. These tent events were the true precursors of the cinema shows. Naidu travelled with this unit to Burma (now Myanmar) and Sri Lanka, and when he had gathered enough money, he put up a permanent cinema house in Madras—Gaiety, in 1914, the first cinema house in Madras to be built by an Indian. He soon added two more, Crown Theatre in Mint and Globe (later called Roxy) in Purasawalkam.

Swamikannu Vincent, who had built one of the first cinema halls of South India in Coimbatore, introduced the concept of "Tent Cinema" in which a tent was erected on a stretch of open land close to a town or village to screen the films. The first of its kind was established in Madras, called "Edison's Grand Cinemamegaphone". This was due to the fact that electric carbons were used for motion picture projectors.

Most of the films screened then were shorts made in the United States and Britain. In 1909, an Englishman, T. H. Huffton, founded Peninsular Film Services in Madras and produced some short films for local audiences. But soon, hour-long films, which narrated dramatic stories, then known as "drama films", were imported. From 1912 onwards, feature films made in Bombay (now Mumbai) were also screened in Madras. The era of short films had ended. The arrival of drama films firmly established cinema as a popular entertainment form. More cinema houses came up in the city.

Fascinated by this new entertainment form, an automobile dealer in the Thousand Lights area of Madras, R. Nataraja Mudaliyar, decided to venture into film production. After a few days' training in Pune with the cinematographer Stewart Smith, the official cinematographer of Lord Curzon's 1903 Durbar, he started a film production concern in 1916.