Shankar Prasad, nicknamed "Shankar Dada" (literally "Brother Shankar") is a bhai or goonda: a crime don in Hyderabad. Given that his father Satya Prasad had wished him to be a medical doctor, he creates the faux Sri Satya Prasad Charitable Hospital (named after his father) and pretends to live in accordance with this wish whenever his father and mother visit him in Hyderabad.
One day, however, Shankar's plan goes awry when his father meets an old acquaintance, Dr. Ramalingeswara Rao, and the two older men decide to marry Shankar to Ramalingeswara Rao's daughter Dr. Sunitha "Chitti". At this point the truth about Shankar is revealed. Ramalingeswara insults Shankar's parents and calls them "fools" for being ignorant of Shankar's real life. Shankar's parents, aghast and later heartbroken, leave for their village. Shankar, in grief and despair, decides that the only way to redeem himself and to gain revenge for the humiliation suffered by his father at the hands of the spiteful Ramalingeswara is to become a doctor. He decides to go to a medical college to obtain an MBBS degree, the graduate medical degree in South Asia.
With the help of his right-hand man, ATM, and others, Shankar cheats to gain admission to the Osmania College of Medical Sciences, where he again encounters Ramalingeswara, who is the dean. His success there becomes dependent upon the (coerced) help of faculty member Dr. Mohammad Rafi. While Shankar's skills as a medical doctor and a student are minimal, often infuriating his teachers with his informality, he transforms those around him with the "Jantar Mantar" (heartful hug) — a method of comfort taught to Shankar by his mother — and the compassion he shows towards those in need. Despite the school's emphasis on mechanical, impersonal, often bureaucratic relationships between doctors and patients, Shankar constantly seeks to enact more empathetic, almost holistic, regimens. To this end, he defies convention by being friendly with a catatonic child named Sriram as if the kid were able to listen and understand; humiliating bullies at the hospital; effusively thanking a hitherto-underappreciated janitor; and providing a listening ear to patients, encouraging the patients themselves to make changes in their lives for the better.
Ramalingeswara, who perceives all of this as symptoms of chaos, is unable to prevent Shankar's efforts from expanding and gaining ground at his college. Meanwhile, Sunitha, who also works at the college hospital, becomes increasingly fond of Shankar, who in his turn becomes unreservedly infatuated with her. Shankar is unaware that Sunitha and his childhood friend "Chitti" are one and the same, but Sunitha hides the detail, pretending to be Chitti's friend. Ramalingeswara tries several times to expel Shankar but is often thwarted by Shankar's wit or the affection with which the others at the college regard Shankar.
Finally, Ramalingeswara requires that Shankar is put to the test to allow him to continue at the college: to disallow cheating, Shankar must answer all questions out loud in front a panel. Though Shankar prepares, the day before his exam, one of the patients he befriended, a young man, dies, and Shankar is unable to help him in his last moments when he tells him that he doesn't want to die. Shankar's grief and guilt for not being able to help his friend gets the better of him and he quits the exam and agrees to leave the college.
In the moments immediately following Shankar's departure, Sriram miraculously awakens from his vegetative state and says the word "Shankar". Sunitha gives a heartfelt speech wherein she criticizes her father for having banished Shankar, saying that to do so is to banish hope, compassion, love, and happiness from the college. As he is leaving, Shankar discovers that a couple of the doctors at the hospital have been doling out ineffective medicines for their own profit. Using his skills as a Dada, or a crime done, Shankar tears down the operation on sight with the help of his friends, exposing the crime to others. Ramalingeswara eventually realizes his folly and thanks Shankar for the great service he did for his hospital. Shankar learns Sunita is really Chitti and the two get together. Finally, Shankar meets his parents and they express their pride in him.
The sound generated at Taramati-Baradri used to be audible to the entire fort of Golkonda because of its strategic location. The producers of Shankar Dada M.B.B.S. obtained special permission to hold this event at such a historical venue. But rain played the spoilt sport and it rained cats and dogs for 3-4 continuous hours in Hyderabad. The organizers changed the venue to Shilpakalavedika, Madhapur.
The celebrities who graced this occasion include K. Raghavendra Rao, D. Ramanaidu, C. Aswini Dutt, KL Narayana, KS Rama Rao, Allu Aravind, Vijaya Bapineedu, Shyam Prasad Reddy, C Kalyan, KC Sekhara Babu, Tagore Madhu, Dil Raju, Ashok Kumar, Chanti Affala, Arjuna Raju, Burugapally Sivarama Krishna, V. V. Vinayak, Sreenu Vaitla, Satya Murthy, Allu Arjun, Ali, Rohit etc. Raghu Kunche and Bhargavi anchored this event.[3]
Later after the completion of 50 days, two songs "Sande Poddu" (performed by Shankar Mahadevan & Kalpana, written by Sahithi) and "Tellarindo Maava" (performed & written by Devi Sri Prasad) were added to the official track list and The Audio was Re-Released. Both versions were well received. The song “Pattu Pattu” is remade as “Kattu Kattu” in Thirupaachi (2005).
The film was re-released in a spectacular 4K version on 4 November 2023,[6][7] sold approximately 18,000 tickets in just one day, amassed 23 lakh gross for opening day.[8]