This paper presents an outline of our work to develop a word sense disambiguation system in Malayalam. Word sense disambiguation (WSD) is a linguistically based mechanism for automatically defining the correct sense of a word in the context. WSD is a long standing problem in computational linguistics. A particular word may have different meanings in different contexts. For human beings, it is easy to extract the correct meaning by analyzing the sentences. In the area of natural language processing, we are trying to simulate all of these human capabilities with a computer system. In many natural language processing tasks such as machine translation, information retrieval etc., Word Sense Disambiguation plays an important role to improve the quality of systems.