Ayakudi is a panchayat town in Dindigul district in the state of Tamil Nadu, India.

Ayakudi is thought to be the place where the kings of Ay Kingdom originated.

Ayakudi originally means Ayar (shepherd) kudi (dwelling place), which aligns itself with the settelement of pastoralists in the "Mullai" land of the Sangam landscape.

Ayakudi, is located at a distance of 4km from Palani, 24km from Oddanchatram, 40km from Dharapuram, 55km from Dindigul, 110km from Madurai and 134km from Coimbatore.

The hill station called Kodaikanal is about 60 km from Ayakudi.