This talk is aimed at presenting our ongoing effort to build a PDT style dependency treebank for Tamil language. The talk will outline the annotation scheme and annotation at morphological and surface syntax layers. Various issues such as ambiguous structures, NP compounding, coordination phenomena and clitics with respect to the treebank annotation will be discussed. Our ultimate goal in this project is to develop a feature rich parsing framework for Tamil, thus we also present the results we obtained in automatic parsing (rule based & corpus based) using the developed resources. Some problematic issues in Tamil parsing will also be discussed