"Athili Sathi Babu is a small-time thief and crook who is crazy about acts of daredevilry who falls in love with Neeraja who is in Hyderabad to attend a marriage. Sathi Babu makes his way into her heart and she also starts loving him. Sathi Babu tells her the truth about him being a thief and resolves to give up crime forever. But before that, he decides to swindle one last person for a large sum of money along with his con-friend Duvva.He tricks a woman on a railway station (Not really station, it is bus stand) and flees with a trunk. This leads Sathi Babu to Neha , a young girl who was in the trunk instead of the wealth he thought was in the trunk, who thinks that satibabu is her father. Flummoxed by what is happening, but forced to keep Neha with her as a police officer Inspector Mahanti keeps his eye on him.
Although he tries keeping neha away from Neeraja's eyes, the latter finds out about Neha. Angry and hurt, Neeraja leaves for her place leaving Sathi Babu heartbroken. Soon, unknown goons attack him, taking him to be a latter named ASP Vikram Singh Rathod, Neha's real father. Rathod looks exactly like Sathi Babu which had caused all the confusion. While many unknown persons help Sathi Babu run to safety with Neha in his arms, he is soon surrounded by the goons. It is then that Rathod makes an appearance and saves the day killing every goon by himself. But Rathod soon dies suffering from injuries.
The other policemen who had assisted the ASP then inform Sathi Babu of the whole incident. In a village Devgarh, a MLA, Bavuji used to trouble and torture people and also annex money from them. His son Munna used to rape the wives of policemen. Rathod immediately arrested him and also made him mentally insane. Munna humiliates police by removing their clothes but was killed by Rathod when he was hung from a tree by the belt of a humiliated inspector. Rathod was attacked by Bavuji's brother Titla on Dusshehra where he was stabbed from the back as well as shot in the head while trying to save a village child and was assumed to be dead. But he survived with a brain injury although the goons assumed that he is dead. Effects of this brain injury are later visible and these effects are diminished by water falling on his head.
Sathi Babu then adopts Neha, who does not know that her father is dead. Then Sathi Babu returns to Devgarh posing as ASP Vikram Singh Rathod and heads to settle the scores with Bavuji. Duvva tells Neeraja the truth and she forgives satibabu. Sathi Babu, being a goon handles Bavuji well with tricks. He sets the MLA's wine factory on fire and makes the villagers rob his food store. A fight ensues in which he defeats all Bavuji's men alone. In the end, he fights with Titla on a rope bridge. Sathibabu ties the rope and cuts the rope and Titla fall to death. Sathibabu gets married to Neeraja and they leave for a new life with Neha and Duvva."
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