Migration has become one of the most important social and economic trends affecting developing economies, especially in areas with high labour mobility. Kerala is a unique case in India where international migration, particularly to Gulf countries, has transformed the economic and social structure through remittances and demographic shifts. This paper reviews key theories of migration and examines the economic impacts at both large and small scales, with a focus on Kerala. The study also considers the link between migration and human development by reviewing both international and Kerala-specific research. The findings show that migration has played a significant role in improving household income, education, housing, health, and living conditions. However, issues such as inequality, consumerism, inflation, reliance on remittances, and a lack of productive investment remain major challenges. The paper concludes that migration is a key element in Kerala’s development path and has greatly contributed to the state’s achievements in human development.