The history of Arunapuram is intrinsically tied to the evolution of the nearby town of Pala and the broader Meenachil region. Historically, the area was dominated by agrarian communities who settled near the fertile banks of the Meenachil River. Early inhabitants engaged in the cultivation of spices, coconuts, and later, commercial cash crops.
A major turning point in Arunapuram’s modern history occurred in the mid-20th century, closely linked to the Syrian Malabar Catholic Church's initiatives to expand higher education. In 1950, the Diocese of Palai established St. Thomas College in Arunapuram. This event fundamentally transformed the village from a quiet agricultural outpost into an active center of learning.
Following the establishment of the college, the area saw rapid infrastructural development, including improved roads, student hostels, and publishing houses. Over the subsequent decades, the region benefited heavily from the "Gulf Boom" (the mass migration of Keralites to the Middle East for employment), which brought significant wealth into the area and spurred modernization while preserving its tranquil village aesthetic.

