This movie was released around the time as another Malayalam Movie starring Prithviraj called "Driving Licence". Both the movies have a similar story line where a rich guy has a confrontation with a dedicated government official. Prithviraj plays the rich guy in both movies. In the movie Driving licence, he plays a role of a movie hero and Introduction scene shows a new movie being released of Prithviraj's charector; where director's name is shown as Sachi ( who is the director of this movie).

The film was titled Ayyappanum Koshiyum as Sachy wanted to state that both Prithviraj and Menon has equal importance in the story. Director Sachy did not have anyone in mind for the two lead roles while screenwriting. Their casting was done after finishing the screenplay.

Last movie of director Sachy as he passed away few months after the release of Ayyapanum Koshiyum

The film's idea was first formed as a story about the relationship between Koshi and his driver, Director Sachy had two real-life friends resembling them, a Jeweller and his driver. Later, a police sub-inspector was introduced into the plot, which took the story into its final draft.

Biju Menon suffered burn injuries on hands and legs while filming for Ayyappanum Koshiyum.