This masterfully crafted romantic drama follows Balakrishna (Kamal Haasan), who is an economically disadvantaged but multi-talented dancer, adept at the Indian classical dances of Kuchipudi, Bharatanatyam, Kathak, etc. Fondly called Balu, his simple and honest soul does not permit him to attain professional success in the commercial world that requires a certain level of moral laxness. Madhavi (Jayaprada), a wealthy young woman and a dance patron, notices his talent and acts as his benefactress, helping him secure an opportunity to participate in a high-level classical dance festival.
Balu's aging mother passes away from the afflictions of poverty two days before the performance. Balu, who was very attached to her, is emotionally devastated and fails to participate in the dance festival. Madhavi nevertheless gives him support and encouragement and sets him on the mend. Balu gradually develops a fondness for Madhavi as their relationship grows. He hides his love for her but eventually picks up the courage to express it. Balu discovers that, while Madhavi shares his feelings, she is a married woman separated from her husband. The husband later returns to unite Madhavi and Balu, but Balu decides to sacrifice his love showing respect for the institution of marriage.
The years pass, and Balu, a disappointed man, has become an inconsolable alcoholic and a newspaper journalist/art critic. Meanwhile, Madhavi's husband dies, and she hears about Balu's condition. In a bid to revive his will to live and his passion for his art, she tends to his medical needs, through his friend, Raghu (Sarath Babu) and solicits Balu to be the dance master for her daughter, Sailaja (SP Sailaja).
The film ends with Sailaja's stage performance with Balu watching her in a wheelchair, his health having completely deteriorated. While watching the performance, he passes away. Raghu and Madhavi are seen taking him away quietly, without interrupting the performance, back to the hospital.