The plot is set up in the late 16th Century revolves around two friends - Puttan Sethupathi and Veerabhupathi. Sethupathi hailing from a royal family falls in love with Meenakshi, an ordinary girl, while Veerabhupathi loves Ekaveera, a young lady from the royal clan in Amba Samudram. However, due to the societal restrictions the dreams of both the couples meet a dead end.
Madhu also called Chinnababu (Akkineni Nageswara Rao) a zamindar's son is very gullible who every one laughs at. One day he meets a girl Vasanthi (Jamuna) who stays in a portion of his house. Vasanthi becomes very friendly with Madhu and behaves very close to him as she sees Madhu just as a brother and nothing else where as in Madhu mistakens Vasanthi's friendly nature to love. One day Madhu has to leave to Chennai for higher studies. He writes letters but he never get any reply from Vasanthi to any of his letters. When he comes back he finds out Vasanthi and her family left the city without telling anybody. Madhu finds a letter from which he realizes that Vasanthi only saw him as a brother. He gets very depressed and falls sick. Seetha (Savitri), Ramakrishnaiah (Gummadi)'s daughter takes care of Madhu by taking care of his health and giving him company. The whole story is how he recovers from the depression he faces because of Vasanthi.
Ramayya, Ranganatham and Venkayya are business partners. When they get huge profits, Ranganatham does not want to share it with his partners. So he murders Venkayya and puts the blame on Ramayya. Ramayya goes to jail, his wife dies and his children suffer at a relations' place. Aanand is their only supporter in that whole house for them.