As of the 2011 Census of India, the Pala Municipality had a population of 22,640. However, this number only accounts for the immediate municipal limits; the broader urban agglomeration and surrounding panchayats that rely on Pala function as a much larger population center.
Pala boasts an exceptionally high literacy rate of over 98%, reflecting Kerala's strong educational infrastructure. The population is diverse but has a prominent Christian majority (predominantly Syro-Malabar Catholics), alongside significant Hindu and Muslim communities. The local economy and population demographics are also heavily influenced by out-migration; a large portion of the town's youth and professionals live and work abroad (especially in the Middle East, Europe, and North America), resulting in a high influx of NRI (Non-Resident Indian) remittances.