This soulful and bittersweet romantic tale circles around the tragic and sacrificial life of Balachandra Menon (Mohanlal), an IAS officer. Balan was brought up in a poor family whose properties was sold out by his father (Karamana) to go on with the legal cases associated with his properties.
Balan was in love with Nandini (Shobhana). She was an aspirant to become a writer and belonged to a rich family. However, their relation was accepted by both their families and their marriage was fixed. Unniyettan (Venu Nagavally) was a teacher of Balan and he was the motivator of Balan to become a civil servant. With prayers from Nandini, Balan successfully passed the written exam of IAS.
On a very unfortunate day, Balan's father committed suicide following his failure in the years long case, for which he had sold out all his family properties and had created huge debts. Balan had to repay the debts created by his father.
Balan, who had passed the written exam passed the interview too successfully. Private money lenders abused and harassed Balan for not repaying their amounts and Balan happened to fight with them. Following the incidents, Nandini's family withdrew from the marriage with Balan and she was house arrested. When the money lenders legally acquired his house, there came a helping hand, Vikraman Contractor (Thilakan) who offered him the money but only if he was ready to marry his daughter. Balan went to Nandini and she insisted him to marry that girl and rescue his family.
In a terrific scene of departure, they decided to split calling it a "sacrifice that they only can do" for their families. Balan repaid his debts after his marriage to Rajeswari aka Raji (Shanthi Krishna), who was an arrogant woman and from whom Balan always faced miseries. Vikraman used the bureaucratic status of Balan to satisfy his and his friends' false needs.
Once when Balan refused to obey Vikraman, he was abused by him and was criticized as a corrupt officer. Following the harassment, Balan decided to move from his wife house but Raji refused to accompany him. Balan who felt insulted left alone from that house.
He took a long leave and set out to a beach resort for some days of relaxation. There he found a middle aged funny man named Eenashu (Innocent) who always tried to keep himself young and spiritful through liquors and woman. His company made Balan forget his miseries and to start a new life.
On a usual evening, Balan was shocked to see his childhood lover Nandini after long decades in his neighbouring cottage. She was still alone and had become an internationally acclaimed writer. Though they were lovers once, they were now not even able to talk freely each other. Gradually they began to share their life matters each other.
On the beautiful beach side, they both shared wonderful evenings through which they were able to make them up the old couples- Balettan and Nandinikkutty. Balan who had changed a lot through Eenashu's company could easily rub the face of Raji from his mind.
After long eves and mornings of romance, Balan and Nandini decided to live together thereafter. But still fate was haunting them. On the day they planned to leave, Balan had an unusual visitor, his wife Rajeswari and children. She realised her mistakes and asked him to forgive her. Balan felt senseless to hear this and he was confused what to do; however, he decided to accept his wife and children. He went to Nandini, who was all set to leave with him.
Once again, after several years, they had to experience the pain of departure. The film ends when Balan set out to his new married life and Nandini, beginning a new era of memories with Balan.