'ambalam' originates from the Malayalam language, specifically the word 'അമ്പലം', where 'അമ്പ' meant 'public' and 'ലം' meant 'place'.

The Malayalam word 'അമ്പലം' was adopted into English as 'ambalam', retaining its original meaning.

Initially, it meant 'a public place for gatherings', and this meaning has largely remained the same in modern usage.