In the 14th & 15th centuries, during the regime of the Kolathiri Rajas Payangadi was renowned all over the Kerala as a seat of learning, enlightenment and culture. In the early days, the ezhuthupallies (village schools)under the Ezhuthachan or village school master, provided facilities to pupils to acquire elementary education. After undergoing the preliminary course of study in these institutions, the children were sent to the kalaries for acquiring training in gymnastics and, in the use of arms and then to study Sanskrit in Vedic schools under the religious gurus. The art, kalaripayattu, famed as the first recorded unarmed combat training, is associated with this village.

The beginning of the Western education in the district may be traced back to the middle of the 20th century. The village has now started so many English medium schools. The literacy rate is almost 100 % in Payangadi.

	There are mainly three institutions,  Madayi High School, Madayi college and Wadi Huda. In the higher education field professional diplomas are available at Wadi Huda. Many students are studying from different part of Kerala. They have hostel facilities available at the same compound. Pariyaram Medcial College is located near by Payangadi.

The Christian movement in Payangadi village started early in 1948 and the constitution of the Malabar local Authority with headquarters at Kottayam in 1951. Along with this Kerala devotional team extended its activities to the village. The team is a non-official body devoted to the promotion of the Christianity  movement.