Zamindar Raja Jaganatha Rao is affluent and obsessed with discipline. He doesn't show any preference between family members and workers; if anyone dares to break the rules, he punishes them harshly. So, his wife, Roopa Devi, and elder son, Raghu, oblige accordingly, whereas the younger son, Chinnababu, finds these rules annoying. Jaganatha Rao learns about Chinababu's ideas and warns him twice, but he does not listen, so furious Jaganatha Rao seeks to punish him, and Chinababu dies out of shock. As a result, Raghu gets upset and wants to leave his father and house. Then Jaganatha Rao allows him a vast amount and asks him to live a wealthy lifestyle and understand life. Unfortunately, Raghu goes into the clutches of a malevolent person, Naagu, who turns him into a spoilt brat. After some time, Raghu tries to trap a beautiful girl, Mala, but looking at her virtue, he reforms himself and gets rid of Naagu. Meanwhile, at the palace, Jaganatha Rao breaks down mentally as his past haunts him. Upon discovering this, Raghu returns.
Before his death, Jaganatha Rao shares his past sin of deceiving a poor girl, Raaji. They two had a child, Rani, who lives as a street dancer. Here, Jaganatha Rao expresses his wish to make her an equal heir without officially acknowledging her to protect the family's honor. Raghu somehow convinces Rani and brings her home, much to the disapproval of his mother, Roopa Devi. At one point, Rani discovers the truth and wants to acquire her identity. Then, she starts teasing everyone in the house. Roopa Devi orders Raghu to expel Rani, but he cannot. He, too, sides with Rani, and when Mala suddenly lands up, she starts to suspect their relationship. Later, she realizes Raghu's righteousness. Nevertheless, Rani does not leave her challenge, making Raghu suffer greatly. Ultimately, she picks up Naagu and plays a drama by introducing him as her fiancé, but Raghu does not yield. Besides, wicked Naagu ploys to double-cross, which are fezzed by Rani when angered Naagu reveals Rani's birth secret. At last, Roopa Devi realizes her mistake and accepts Rani and Mala as her daughter-in-law. Finally, the movie ends happily with the family's reunion.