As of 2001[update] India census, Peralam had a population of 5,844. Males constitute 50% of the population and females 50%. Peralam has an average literacy rate of 80%, higher than the national average of 59.5%: male literacy is 84%, and female literacy is 77%. In Peralam, 10% of the population is under 6 years of age. This town had a meter gauge railway line from French colonial days going eastwards via Pattucoudy, Ambagarathur and Thirunallar to Karaikal city these trains were to or from Mayaladuturai (Mayavaram). There were trains going southwards to Thiruvarur too thus was called Peralam Junction,and the railway station had a customs house. There are very frequent bus services to Thiruvarur, Mayiladuturai, Karaikal, Tanjavur, Kumbakonam, Trichy etc. There is a lodge and many general stores , small hotels too function here. Peralam has a famous Shiva temple, Swambunathar is the presiding deity here.The town is surrounded by many great temples all around. Thirunallar, Karaikal Ammayar temple, Thirumeechiyoor, Thirupamburam, Lord Shaniswarars birth place, Ambal and Makkalam temples, Thirukottaru, Koonthannur Saraswathidevi Temple, Naramugha Ganapathi temple, Siripulyur and Tezhazandur Divyadesam, Vazhavur Veerateswarar, Komal temples, Nalladai Agneeswarar are few famous temples within ten miles from Peralam.