By the mid-2000s, the "B-grade" wave began to recede. Several factors contributed to its end:

: Major stars of this genre included Shakeela, Reshma, Maria, and Sajini. Actors/Directors

In the late 1990s, the Malayalam film industry faced creative stagnation and a decline in audience for traditional family dramas. High-budget superstar films often failed to turn a profit, and the rise of satellite television began eating into daytime attendance.