Fake news detection in Malayalam is difficult due to limited data and language challenges. This study compares machine learning, deep learning, and transformer models for classification. The dataset is balanced and divided into training, development and test sets. Machine learning models (SVM, Random Forest, Naive Bayes) used TF-IDF features and deep learning models (LSTM, BiLSTM, CNN) worked with tokenized sequences. We fine-tuned transformer models like IndicBERT, MuRIL, mBERT, and Malayalam-Bert. Among them, the Malayalam-Bert model performed the best and achieved an F1 score of 86%. On the other hand mBERT performed best at spotting fake news. However, the models struggled with mixed-language text and complex writing. Despite these challenges, transformer models turned out to be the most effective for detecting fake news in Malayalam.