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Param Veer Chakra is about Chakradhar (Balakrishna), a famous movie actor who dons various roles. An army Colonel Jeetendra (Murali Mohan) tells him that he has a story in which he wants Chakradhar to act. The Colonel narrates him a story of an army major, Major Jay Simha (Balakrishna) a real time army man who looks ditto like Chakradhar, and valiantly arrested a dreaded terrorist Abdul Ghani. Tragedy is Jay Simha is now in a vegetable state on ventilation. Colonel Jeetendra asks Chakradhar to act like Major to ensure that the nation's security plans are not compromised. How Chakradhar attacks the terrorists and how he brings back the honor of the Major forms the rest of the story.