The actor's maiden directorial venture will feature senior actor Rajkiran in the titular role, besides Prasanna and Chaaya Singh.
The first schedule of the shooting for the film commenced on Wednesday after a pooja, the actor's publicist said.
"Power Paandi" will be produced by Dhanush's Wunderbar Films.
The actor, who has in the past crooned hits like "Why This Kolaveri Di," has along with his father Kasturi Raja, penned the lyrics for the film.
Dhanush, 33, also released the first look of the film on his Twitter page, showing Rajkiran in a biker like look.
Big big day #DreamsComeTrue," his wife Aishwaryaa R Dhanush tweeted.
Bollywood actor Suniel Shetty also wished luck to Dhanush for his directorial debut.
"Definitely a big day @ash_r_dhanush & @dhanushkraja . Hope all your dreams come true. Good luck! #PowerPandi," he posted.