Balu (Pawan Kalyan) is the youngest son in his family and a careless guy. His father always scolds him, but his uncles and mother dote on him and so do his brothers. He has a bunch of friends (played by Ali, Venu Madhav and others) and hangs around with them. On one occasion, Balu's father is angry with him; Balu leaves the house to be left alone for a while (on the eve of Diwali). He chances to see Anu (Keerthi Reddy) on the road with some kids and he falls for her. She has returned from the USA to spend time with her grandfather (P.J. Sharma).

Anu is impressed with Balu when he saves a kid's life on the motorway; she tries to get his autograph but fails. Balu leaves for Ooty for his studies and accidentally meets Anu on the way when his taxi breaks down. Anu gives Balu a lift and leaves her driver to help the taxi driver. While on the way, Anu's car slips into a valley due to a rash lorry driver. Balu makes an effort to save Anu and rescues her to safer ground. Trying to save Anu, Balu slips off into a valley. Anu is depressed that Balu sacrificed himself to save her, searches for him and loses hope. Balu is saved by a truck driver and admitted to a hospital. On his return, Anu meets Balu at his house to express her gratitude. Balu thinks of proposing his love but is warned by his sister (Munny). Balu develops a friendship with Anu but never dares to express his love. Vasuki gets married and leaves. At the same time, Anu gets admission into Harvard University (USA) and is about to leave. They remain silent until they reach the airport. Just before Anu leaves, she realizes that she would miss him and they agree to meet after realizing their goals.