Thodupuzha's early history is closely intertwined with the ancient principality of Vadakkumkoor. For centuries, the area was a significant junction on the spice trade routes, connecting the high-altitude cardamom and pepper plantations to the ports of the Malabar Coast.
In the 18th century, the region was annexed by Maharaja Marthanda Varma and integrated into the expanding Kingdom of Travancore. Under Travancore rule, Thodupuzha saw gradual administrative organization and infrastructure development. The neighborhood of Karikode, located on the outskirts of the modern town, was the historic headquarters of the region and still houses ancient mosques, temples, and a fort in ruins, standing as a testament to the town's pluralistic cultural heritage.
During the 20th century, Thodupuzha experienced a significant economic boom fueled by the commercial cultivation of natural rubber. As agrarian wealth increased, the settlement grew rapidly. It was officially constituted as a municipality in 1978. In recent decades, a strong trend of emigration to the Middle East and Western countries has profoundly influenced the local culture and economy, ushering in modern amenities, improved educational institutions, and contemporary architecture.