Madhu (Raja) hails from a poor family, but is a sports champion of the college. Besides, he is very good at studies. Swapna (Sneha) is the daughter of a millionaire Sarvabhouma Rao (Kota Srinivasa Rao). She is also good at studies and other extra-curricular activities. However, she is a down-to-earth girl and always wants to be very simple. She goes to the college in bus and doesn't want to use even a car. Sekhar (Chakravarthy) is their classmate. Sekhar loses his heart to Swapna. Ramya is also their classmate and is the best friend of Swapna. Once, Madhu saves a girl called Shanti when Swapna's brother (Raghubabu) tries to tease her. So, he bores grudge against Madhu. Though Sekhar loves Swapna, she gives her heart to Madhu and Sekhar silently moves away from them. When Madhu goes to Swapna's birthday party, he gets thrashed by her brother. So, Madhu decides to keep off from her for some time and goes to Hyderabad as he gets a job there. However, Madhu promises Swapna that he would marry her by convincing her parents and brother after some time. Ramya, who also stays in Hyderabad after her marriage, mistakes Madhu, as he moves close with Shanti, the daughter of the house owner. Moreover, one of Shanti's colleagues (Navabharat Balaji), who loves her, resorts to malicious campaign against Madhu and Shanti. This strengthens the doubts of Ramya and unfortunately Swapna goes to Hyderabad and she too mistakes the friendship of Madhu and Shanti. Swapna agrees to marry anybody as she feels that she has been ditched by Madhu. Incidentally, Sekhar happened to be the son of Sarvabhouma Rao's childhood friend (Narra Venkateswara Rao) and the elders fix their marriage. However, Sekhar too tries to convince Swapna that Madhu is a gentleman but fails in his effort. When Madhu meets Swapna, she chides him and terms him as a cheat. Just before the marriage, Sekhar dies in an accident. At this juncture, Shanti, who is the niece of Sekhar's father, visits him to console and she happens to see Swapna. She reveals the truth that her love is one-sided and Madhu really loves her and she is still in his thoughts. Swapna realises her mistake and finally the story ends with a happy note with the union of Swapna and Madhu.
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