This exquisitely crafted romantic drama revolves around Morampudi Anil Kumar (Ravi Teja), a well-educated but unemployed youth who comes to the city in search of a job. After attending a hundred interviews, he is offered a night watchman job by an employer who is impressed by Anil's honesty and dignity of labour. Anil starts looking for a room to stay in a nearby colony.
Satyanandam (Jeeva) stays in the colony and takes care of a NRI friend's house, collecting rent for him. Swathi (Kalyani) stays in that house and works in a software firm. Satyanandam is interested in collecting extra rent for himself and offers the house to Anil on the condition that he can stay there only during the day, without Swathi's knowledge. Anil agrees and moves into the house. Anil is impressed by the way the room is decorated and artfully arranged and understands that the lady staying there has a very good taste.
After a month, Anil accidentally breaks Swathi's porcelain artefact in the room and writes a letter to her apologising for his mistake. Swathi comes across the letter, and learns that someone else has been staying in her room without her knowledge. But she takes a liking for Anil's honesty and lets him stay in her house when she is not there. Both keep communicating through letters and become good friends, gradually falling in love without seeing each other.
Anil and Swathi also happen to meet in a restaurant when she unknowingly accuses him of stealing her purse. They start off as enemies but become good friends without knowing that they are room mates too. One day, Anil comes to know that the friend he has been meeting outside is none other than his own room mate Swathi, but does not reveal this to her, wanting to surprise her at the time of marriage.
Anand, the brother of Swathi's office manager takes a liking for her, and sends his father to her adopted parents in the village seeking alliance. Swathi's poor parents express interest, as it would help them to get their two younger daughters married.
Swathi is in a fix, as she wants to help her father who adopted her and brought her up despite his poverty, but she cannot let go of her love for Anil. She expresses her dilemma to Anil as a friend, without any knowledge that it is with him that she is in love actually. Anil realises that Swathi's family would benefit from her marriage with Anand. He leaves a letter in the room telling her that he is deserting Swathi and going after a rich girl. As a friend he comforts Swathi and convinces her to marry Anand. However, Swathi comes to know the truth in the end through Anil's friend and they unite.