After the formation of Chin State, it was the capital city until the administrative offices were moved to Hakha in 1974.

Falam is the headquarters of several important organizations, such as the Chin Baptist Convention (CBC).

Many of the buildings in Falam reflect the British occupation and its former status as the state capital.

The name Falam originated from Fa-hlam, from Taisun language of one of the tribes in Chin.

Many federal agencies maintain offices in Falam, such as Forestry, Health, Agriculture, Customs and Education.