Kalyaan, a former participant on the reality show Naalaiya Iyakkunar, began making his directorial debut film, Kaathadi, during October 2014. Sai Dhanshika was signed on to play a police officer, while Avishek Karthik, previously seen in Gautham Vasudev Menon's Vaaranam Aayiram (2008) and Nadunisi Naaygal (2011), was selected to portray the lead actor.[2] Dhanshika suggested the makers chose her for the role because of her height, and partook in the action scenes without a stunt double.[3] The film began production in late 2014 and was revealed to be in post-production by October 2015.[4][5] The movie was shot extensively in Chennai, Kerala and Yelagiri hills.[6][7] During the shoot at Vagamon in Kerala, a group of drunkards came to the spot and briefly caused trouble before Dhanshika helped halt the issue.[8][9]
A long delay before the release of the film meant that two other films of Kalyaan, Katha Solla Porom (2016) and Gulaebaghavali (2018), were released before Kaathadi. Sai Dhanshika also gained further popularity between the end of production and the release of the film, following her appearance in the Rajinikanth-starrer Kabali (2016). In between, she also worked on Uru (2017), a film by Vicky Anand, who worked as an assistant to Kalyaan during the making of Kaathadi.[10][11]
The satellite rights of the film were sold to Vasanth TV.[12]
A critic from Cinema Express wrote that "With not many redeeming factors, Kaathadi is an amateur take on a run-of-the-mill story with twists that don't really raise eyebrows".[13][14][15]