This family-oriented relationship drama revolves around Harischandra Prasad, (Venkatesh) the arbitrator and most respected person in a village, who ensures that justice, happiness and harmony reign in his village. Singaraju Lingaraju is his only enemy and voice of dissent.
Harichandra Prasad has a big family comprising of his wife, Vasundhara (Radhika), three sons, Ravi Prasad, Divakar Prasad, and Bhanu Prasad, daughter, Shanti, two daughters-in-law, and two granddaughters. Though he is being the father of three sons, he dislikes his third son Bhanu (again Venkatesh) because of Bhanu being illiterate, but Bhanu is a devoted and benevolent son to his father. Bhanu has to do menial household work and if kept isolated ostracised from the family.
Swapna (Meena) arrives for her brother's wedding to Bhanu's sister. In the beginning, she thinks Bhanu is a servant and looks down on him, after some time she learns the fact and she asks Bhanu's friend Nukaraju (Sudhakar) what actually happened, then he reveals Bhanu's past.
Bhanu's childhood love Madhavi (Sanghavi), turns down Bhanu and attempts to commit suicide to escape from being married to Bhanu as she does not want to unite with an illiterate man. To prevent any misunderstandings, Bhanu declared that he was not interested in Madhavi and earned his father's wrath. After listening to Bhanu's story Swapna falls in love with him. Even though Bhanu isn't interested initially, eventually, he accepts her love.
Meanwhile, Singaraju makes a plan to have Swapna marry his son. Bhanu breaks his plan and marries Swapna and enrages both of their parents. They start living in the village outskirts. An event occurs in which Madhavi insults them, so Bhanu decides to prove himself. Swapna teaches him reading, writing and some arithmetic, while she pursues her own, I.A.S. studies.
In due of time with hard work Bhanu Prasad gradually becomes one of the biggest businessmen in town, Swapna the District Collector, and they have a fine young son, Junior Harischandra Prasad (Master Anand Vardhan). At one point, Madhavi requests Bhanu to allow her husband to work in his factory, as his business is under loss.
Harischandra Prasad incidentally comes across his grandson, develops a secret friendship with him. Knowing this Bhanu and Swapna also feels very happy. One day, Bhanu gives his son some canned Payasam (rice pudding) to be offered to his father Harischandra Prasad.
Somehow, the evil Singaraju mixes up poison in it. Vasundhara comes to know about the secret meeting of Harischandra Prasad with his grandson and urges him to accept Bhanu back into their family. She praises Bhanu to be as valuable as a diamond. At the same time Harischandra Prasad is hospitalised after falling seriously ill, apparently from having ingested the 'payasam' and suspicion once more falls upon Bhanu for attempting to murder his father.
At the hospital, when Singaraju and his men badly beat Bhanu, Harischandra Prasad for once comes to this son's rescue and declares that Singaraju had poisoned the 'Payasam', underlining Bhanu's innocence. A violent confrontation ensues between Harischandra Prasad and Singaraju until he confesses his guilt. Finally, Harischandra Prasad accepts Bhanu as his son and the entire family is happily united.