The film begins with a ruffian, Naagulu, who resides in a labor colony where two charming girls, Rathalu & Taayaru, run tea stalls competitively and always squabble. Rathalu loves Naagulu, but he falls for Taayaru, and she does not reciprocate. Once, Naagulu spots a frustrated, unemployed guy, Murali, committing suicide since he is failing to feel his mother, Mahalakshmi, who strived hard for him. Naagulu shelters Murali when Taayaru starts endearing him. Knowing it, enraged Naagulu smacks & expels Murali and moves to Taayaru, where he gets her true heartstrings. Murali gets rich and ignores tayaaru. How is naagulu connected to murali and will murali taayaru end up with murali is the plot