The present-day Palar River and its palaeochannel located in the Southern Peninsular India were investigated with a multidisciplinary approach. The main aim of the study was to reconstruct the palaeoenvironment history of the Palar River basin and to delineate the role of Holocene fluctuations that played a major role in the geomorphological evolution of the region since the Holocene period. The results obtained based on sedimentary facies analysis supported by elemental concentrations and optically stimulated luminescence (OSL) dates reveal distinct seven climatic phases since the past ~10 ka. Phase 1 signifies a very high precipitation as attested by the low CWI with high Rb/Sr ratio. Subsequent to Phase 1, a decreasing trend in the northeast monsoon rainfall (NEMR) is observed (Phase 2). Phase 3 (~4.83–3.59 ka) reflects a decrease in NEMR further supported by low Mn/Al, Mg/Al and Chemical Index of Alteration (CIA) values. Phase 4 (~3.59 ka) is marked by high sand flux, higher K/Al, Ti/Al, Rb/Sr and Ba/Sr ratios coupled with lower values of CaO/MgO, Mn/Al and Fe/Al indicating wetter conditions in the catchment area resulting in the intense weathering of the bedrocks caused owing to the increase in NEMR precipitation. Phase 5 (3.26–2.42 ka) reveals a decline in NEMR precipitation coupled with rapid upstream avulsion because of neotectonic activity that occurred in an intense dry phase. Phase 6 (~1.88–1.44 ka) is marked by an augment NEMR causing higher K/Al, Mg/Al, Ti/Al ratios, CIA and CWI values. Finally, Phase 7 (~1.44 ka–present) is marked by lowered elemental solubility and mobility reflecting short periods of weaker or deteriorated NEMR. The documented record of the Palar River and palaeochannels suggests Holocene NEMR variability in the study region and is synchronous with the various proxy records of NEMR-dominated regions, however, revealing an inverse coupling with southwest monsoon rainfall (SWMR) during the Holocene period.