A mentally unstable pregnant woman runs inside a temple and closes the door. She gives birth to a boy at the feet of Lord Krishna’s idol and breathes her last. The doors of the temple are closed, as people believe that the birth of such a woman's child in 'Gharbhagudi' is a bad omen. The boy, named Arjun (Manchu Vishnu), grows up under the guardianship of his grandmother (Manorama). He goes to work as a bodyguard to Satya (Mamta Mohandas), the sister of landlord Pedababu (Nassar). Arjun and his grandmother live in the outhouse of Pedababu’s bungalow. Arjun is ill-treated by everyone. When an astrologer says that Satya’s first husband will be killed and she will live happily with her second husband, Pedababu plans to get Satya married to Arjun first. Then, he conspires to kill him and get Satya married to a rich man. However, Lord Krishna (Nagarjuna Akkineni) comes to Arjun's assistance. Arjun gains some powers from his companionship with the Lord and overcomes the evils that threaten his peace and family life. He also succeeds in reopening the doors of the temple. Arjun then dies by jumping off a tall building because of his faith in Lord Krishna who revives him a minute after his death. The film ends on a happy note.