The film is about Ravi Chandra, the film's hero and Sagara Kanya, a mermaid. Malashree plays Ganga, Ravi's cousin who loves him. They stay with some comedians in a house near the seashore. Kaikala Satyanarayana, the villain of the film, tries to acquire a ship which sank with much treasure on board.
He associates himself with a witch who helps him in finding the treasure. After a few attempts, the witch finds out that the treasure can be recovered with the help of a mermaid. Accidentally one day Sagara comes on to land from the water and loses her mermaid body. She transforms into a beautiful woman. Whenever water is spilled over her, however, she turns back into a mermaid.
On land, she becomes involved with the hero, Venkatesh. She is named as Bangaram. Bangaram starts loving Ravi. The witch learns about Sagara and informs Kaikala that only a mermaid can find the treasure.
The film continues with Bangaram being harassed and with Ravi's adventures. In the end, Ravi wins over the evil elements. Bangaram returns to the sea uniting Ravi and his cousin.
