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Mafia leader Sobhanadri (Raja Murad) picks up the orphan Sivaji (Mohan Babu) on the streets and takes him as godson. Hemadri (Riaz Khan) is the son of Sobhanadri and he is often jealous of the love showered on Sivaji by his father. Hemadri kills a judge in a fit of rage and Sobhanadri reprimands him and gives the power of attorney for his assets and operations to Sivaji.
An enraged Hemadri plans to assassinate the entire family of Sivaji and he succeeds only in killing wife of Sivaji (Soundarya) and one son. Sivaji takes his other son and migrates from Vizag to Bailukuppe monastery (near Mysore) to become a monk. He changes his name to Shiv Shankar and donates all the money he inherited from his godfather to the monastery. Meanwhile, Sobhanadri and Hemadri are in frantic search to find out Sivaji and retrieve all their money. The rest of the story is all about what prompted Shiv Shankar to travel back to Vizag and how all ends well.