The film's plot deals with a "cow" inspector played by Anant Nag who comes to a village from city and plays his tricks on the innocent minds of the villagers and wins over them by cheating. The sequence that unfolds later are shown in a comical way. Nagathihalli won the Best Story Award at the 1991–92 Karnataka State Film Awards.[4]
The film was Nagathihalli Chandrashekar's debut as a director. He was encouraged to direct films by Anant Nag after he was impressed with Chandrashekar's screenplay in their earlier collaboration, Udbhava (1990). For Undu Hoda Kondu Hoda, Chandrashekar into screenplay a short story he wrote based on an incident that occurred in his village. It was a story of a man who pretended to be a cow inspector and cheated people by robbing them off their money by building false dreams. Chandrashekar added, "The irony of the story is that in a place where there is no drinking water, the protagonist spreads dreams of a land overflowing with milk, butter, ghee." The film was shot in a village outside Shimoga in Karnataka. Many stage actors were used in the film by Chandrashekar, including Karibasavaiah.[1]