This sea coast town is situated about 22 kms. west of Nagercoil. It was a port for European merchants during the 16th to 18th centuries. The Dutch and the English had trading settlements here. It was the scene of a combined naval battle in August 1941, in which Marthanda varma inflicted a crushing defeat on the Dutch. This victory is commemorated by a pillar erected at the site. A variety of commodities is exported from here. Prominent among them being Palmyra and its fiber, mineral sands, fish and salt.

Efforts are being made by the port advisory committee for the construction of a ship yard and for the developments of a natural harbour at Colachel.