It was established on 28 June 1995 to promote and project the traditional art forms of Kerala.

It also produced a book about 100 folk art forms of Kerala and two dictionaries, one on Chavittu Nadakam and another on Beary language.

[2] The institution was formed under the Travancore Cochin Literary, Scientific and Charitable Societies Registration act of 1955.

It began functioning on 20 January 1996,[1] to impart training in folk arts and to ensure ongoing efforts in their development, promotion and perpetuation.

"[3] The academy awards prizes and fellowships to notable artistes and experts in the field of folklore.