As of 2001 India census, Ayyampalayam had a population of 12,131. Males constitute 50% of the population and females 50%. Ayyampalayam has an average literacy rate of 62%, higher than the national average of 59.5%; with 56% of the males and 44% of females literate. 11% of the population is under 6 years of age.Coconuts and Mangoes are the main production in this village. This village is located at the bottom of Kodaikanal. Marudanadi dam is very nearer to this village and through which around of lands gets irrigated.
An ancient Muthalamman Temple festival is very famous in this village. This festival was headed by Alappa gowder and their family members every year. This takesplaces for three days Wednesday, Thursday and Friday. Wednesday night is the most important day of the festival, during that day they bring goddess statue from Thevarapanpatti and decorate the goddess in Alappa gowder's temple house and then only it goes to the temple where festival begins and final Friday aarathi was also taken by Alappa gowder family to the goddess as send... Read More