The importance of education is basically for two reasons. The first is that education makes man a right thinker. It tells man how to think and how to make decisions. The second reason for the importance of education is that only through the attainment of education, man is enabled to receive information from the external world; to acquaint himself with past history and receive all necessary information regarding the present. People in Dharmadam village realized this quite early. Subsequently all levels of educational institutes developed in Dharmadam village.
One of the main campuses of Kannur University is situated in Dharmadam village. Presently the following departments are functioning in this campus:
Brennen College is one of the oldest educational institutions in Kerala affiliated to Kannur University. The Brennen College evolved from a school established by the English philanthropist, Edward Brennen, who had made Thalassery his home. He was travelling in a ship that met an accident near Thalassery and reached the shore half dead. He lived the rest of his life in Thalassery. This college, which is more than a hundred years old is one of the premier educational institutions in the state of Kerala. In December 2004, the government of Kerala decided to bestow the status of University to the Brennen College. Currently the College provides 8 Post Graduate courses and 17 Graduate programs. It also offers research facilities in Malayalam, Hindi and Sanskrit. There are around 2000 students and 100 teaching staff in this prestigious institution.
The earlier version of DIET was Govt. Basic Training school. As per the 1986 National Educational Policy, in 1991 it was renamed as DIET. The main aim of DIET is the improvement in the teaching style of primary education. Two year T.T.C courses and short term courses for teachers in Kannur district are conducted here.
With the effort of people in Dharmadam village, a Govt. High School was established in Palayad in 1962. In 1996 it was converted as a Higher Secondary School. Around 1500 students are studying in this school.
Other educational institutions in this village are: