Balu (Varun Sandesh) is the son of a lovable middle-class couple (Prakash Raj & Jayasudha). Swapna (Shweta Basu Prasad) is the daughter of a strict and rich father Ahuti Prasad. Both of them study in a residential college located at Visakhapatnam.
Balu and Swapna fall in love. Swapna is taken away from the college after a picture of them gets published in the newspaper. Balu is told that in order to write his exam he has to bring his father to the college. He goes home and tells his parents a completely different story. While his parents keep thinking that he is studying for his exam, he is busy daydreaming about Swapna and looking for her. At last he brings his father to the college, not to write the exam but to see Swapna. His father is clueless what is happening and still believes Balu.