According to local chronicles, Veeramunai was founded by early Mukkuva settlers in a medieval feudal division called Nadukadu during the pre colonial period (prior to 1505 CE).

These farm holdings led to considerable conflicts with residents of a demographically larger nearby town of Sammanthurai.

About 75% of the villagers left Veeramunai as refugees and setup satellite settlements like Malwattai, Kanapathipuram and Veerachcholai away from Sammanthurai.

Veeramunai land holdings were eventually sold to the residents of Sammanthurai thus the village reduced in size and population considerably.

Members of the village were also present within the Hindu temple at Veeramunai as refugees when it was attacked by Home Guards from Sammanthurai on August 12, 1990 resulting in the death of 55 civilians.