This family-oriented relationship drama revolves around Rajan (Mammootty), a sincere young man who is successful in his professional life, but not so in his personal life. His wife, Nalini (Unnimary) aspires to get a fellowship to Harvard University in the United States, leaving behind her husband and kid, Babumon. When his father, Madhavan (Balan K Nair), a retired school teacher, is down with an ailment, Rajan along with his family returns to his ancestral home.
Rajan's elder sister, Vishalam (Shubha), younger sister, Seethalakshmi and husband Padmanabhan (Lalu Alex) also arrive to meet their father, as his health condition is serious. Madhavan's daughters and in-laws are busy in their own ways, as they don't wish to spend many days with their dying father. In his sickness, Madhavan expresses his wish to meet his niece, Ammukutty (Seema). Ammu arrives and took care of her dying uncle. Madhavan's children except for Rajan leave as Ammu is there to look after their father. Rajan remembers his young days of romance with Ammu.
Rajan and Ammu wish to marry each other. Ammu, an elementary school teacher, encourages him and sponsors him to enroll for Masters Degree in Business Administration from prestigious Cochin University. Rajan meets Anil Kumar (Mohanlal) at the University.
Rajan secures a good job once he completes the course. But then, Rajan's boss Balachandran (Janardhanan), who is Madhavan's disciple, wishes to marry his daughter Nalini to Rajan. Madhavan in spite of knowing his son's and Ammu's love, insisted Rajan to marry Nalini. Helplessly, Rajan obeys his father. Ammukutty desperately starts living alone separately in her house thereafter and continues her job.
Nalini goes to town from her ancestral home to attend her interview with Harvard University. Busy with his job, Rajan also wants to leave. Upon Ammu's request, he leaves his son with her. Babumon and Ammu becomes close and they spend those days happily.
Nalini passes the interview and is all set to go to the US. Knowing her son's relation with Ammu, she asks Rajan to bring Ammu as servant to look after her son when she's away in the USA. Rajan tells her Ammu is the one who spent money for his higher studies. Nalini later tries to return the amount of money which Ammu spent for her husband. Ammu is deeply offended and hurt by the act and ends up shouting at Nalini. Understanding his wife's fault, Rajan slaps her and reveals their unfruitful love story. Ammukutty later she is remorseful at having lost her temper and patches up with Nalini.
Nalini repents for her rudeness and becomes willing to give up on her higher education in the US in order to stay with the family. However, Ammu's insists that she must not sacrifice such an incredible opportunity. So, Rajan and Nalini unanimously decide to get Nalini to fly to the US to complete her fellowship. Madhavan's health slowly recovers. Rajan, Nalini and their son happily go back, leaving Ammukutty again in her loneliness.