Ayakudi is a panchayat town in Dindigul district in the state of Tamil Nadu, India. Ayakudi is thought to be the place where the kings of Ay Kingdom originated. The city is known for guava. It is filled with nature in the slopes of Kodaikanal.

Ayakudi originally means Ayar (shepherd) kudi (dwelling place), which aligns itself with the settelement of pastoralists in the "Mullai" land of the Sangam landscape.

Ayakudi, is located at a distance of 4km from Palani, 24km from Oddanchatram, 40km from Dharapuram, 55km from Dindigul, 110km from Madurai and 134km from Coimbatore.

• Ayakudi had a population of 27,156 as per the 2011 Census, out of which 13,533 are males while 13,623are females in the town.
• Population of Children with age of 0-6 is 2526 which is 9.30 % of total population of the town.
• The female sex ratio is of 1007 against the Tamilnadu state average of 996. Moreover Child Sex Ratio in Ayakudi is around 910 compared to Tamil Nadu state average of 943.
• The Literacy rate of the town is 68.79 % against the state average of 80.09 %. The male literacy is around 76.79 % while female literacy rate is 60.85 %.

• The Schedule Caste (SC) constitutes about 48.07 % of the population, while the Schedule Tribe (ST) were 1.08 % of total population in the town.
• Hindus formed the majority of the population at 84.18% followed by Muslims at 14.91%, Christians at 0.80% and others at 0.11% as per the 2011 Census.

This place is (3.0 km) from Palani, and its Lord Muruga Temple. The hill station called Kodaikanal is about 60 km from Ayakudi. A pond divides the city into Old Ayakudi (east of the pond) and New Ayakudi (west) and Obulapuram.

There are Government primary schools and private primary schools are available inside the village. Ayakudi Jamindar founded a Higher Secondary School named I T O (Immudipatam Thirunyanasamanth Obala Kondamma Naiyakan) Higher Secondary School, is a major source of education.

Swamy Matric Higher Secondary School is in Thattankulam, Palani.

Vivekanada Vidhyalaa is a matriculation school in Ayakudi. Its students get high scores in 10th and 12th standards.

Apart from this school, in Palani there are Akshaya academy, Devi matriculation school, Government Girls and Boys Schools, and St. Paul's matriculation school.

Arulmigu Palani Andavar Arts and Science College, APA college for Ladies, APA polytechnic, Subramianaia Engineering college are near Ayakudi.