Ragaviah (Gollapudi Maruthi Rao) and Pentayya are Hitler-like tyrants who rule over a village, where most of the inhabitants are illiterate. Ragaviah and Pentayya doesnot allow anyone to make efforts to educate the kids of the village. In the same village there lives a boy named Ramu (Krishman Raju) along with his widowed mother, who works as a servant in Ragavaiah's bunglow with another small orphaned girl named Chanda due to some reasons. Years later, Ramu grows up and returns to the village and spreads awareness of the importance of studies to the villagers and urges them to allow their kids to go to school. Ramu faces lots of problems in changing the mind set of village kids too as the kids have only heard about differences in cast, colour and stories of hatred between the rich and the poor. Laxmi (Sridevi), herself a graduate, starts helping Ramu in his efforts and also starts dreaming of marrying him. Finally after many twists he achieves what he wants.This movie is a super hit and a must watch.