It was recaptured and rebuilt grandly by Sultan Hyder Ali in 1766 A.D and remains one of the best-preserved forts in Kerala.

The Palakkad Fort is said to have existed from very ancient times but believed to be constructed in the present form in 1766 A.D, but little is known of its early history.

The local ruler, Palakkad Achchan, was originally a tributary of the Zamorin but had become independent before the beginning of the eighteenth century.

Hyder Ali seized upon the opportunity to gain possession of a strategically important location such as Palghat and from that time until 1790 the fort was continually in the hands of the Mysore Sultans or the British.

An open-air auditorium called "Rappadi", currently under the preservation of the Archeological Survey of India, is also located within the spacious grounds of the Fort.