But the actual correct word is பழம்நீர் which means place surrounded by fruit with water(Coconut and Palm)trees.

Upon Shiva expressing his intention of dividing the fruit between his two sons, Ganesha and Murugan, the sage counselled against cutting it.

It is believed that Murugan felt the need to get matured from boyhood and hence chose to remain as a hermit and discarded all his robes and ornaments.

[citation needed] Palani and most of Dindigul district were part of the Kongu Nadu[6] region of the Tamil country.

In the 18th century, Hyder Ali and his son, Tipu Sultan ruled over the place before being annexed the British after the Third Anglo-Mysore War.

Palani is home to one of the most sacred shrines of the Murugan, as worshiped in the Hindu sect of Kaumaram.

The Thandayudhapani Temple dedicated to Murugan "Palani Andavar", and regarded one of his Arupadai Veedu (Six Battle Camps), is situated here.

[8] Besides this, right at the foot of the Sivagiri is a small shrine dedicated to the god Ganapathi, where he goes by the name Pada Vinayakar.

The backdrop to the town is formed by an offshoot of the Western Ghats, the Palani Hills, whereon lies the hill-station of Kodaikanal.

KSRTC buses connecting places like Kottayam, Kozhikode, Kasaragod, Guruvayur, Ernakulam, Thrissur, Palakkad, and kottarakara are available at particular interval of time from Palani bus stand.

24 hours buses are available on all three main roads (via Dharapuram, Oddanchatram and Udumalaipettai) Station Code :PLNI, Palani is a part of the Coimbatore-Rameswaram BG line prior to the commencing of gauge conversion.

Recently Amritha express running from Madurai – Thiruvananthapuram via Dindigul, Palani, Pollachi, Palakkad, Thrissur, Ernakulam, Kottayam, Kollam.