Kaathala Kaathala was initially expected to be directed by K. S. Ravikumar who directed the successful Avvai Shanmugi with Kamal Haasan in the lead earlier, but he was later replaced by Singeetam Srinivasa Rao after he refused to sign the film until the Film Employees Federation of South India (FEFSI) strike of 1997 had stopped. Actresses Meena and Simran's unavailability led to Rambha being cast in a lead role. Nagma also opted against signing the film fearing that a potential clash may arise with actress Rambha, after the pair's alleged fall out on the sets of Janakiraman. After Soundarya's death in 2004, Haasan paid tribute to her when he said, "she came forward to do the movie, when the rest of the industry was unwilling to work with me." Cho Ramaswamy, wanting to express solidarity with Haasan's stand during the strike, asked him for a role in the film and got it.
