|Producer||Sekhar Kammula, Chandrasekhar Kammula|
|Music Director||Mickey J Meyer|
|Cinematography||Vijay C. Kumar|
|Film Editing||Marthand K. Venkatesh|
|Playback Singers||K K, Karthik, Sreeram Chandra, Naresh Iyer, Shashikiran, Sravana Bhargavi|
|Gurshagun Kaur Sachdeva|
|Srinu (Abhijeet Duddala) is a degree student who has two sisters, Satya (Rashmi Shastry) and Chinni (Kavya). Srinus widowed mother (Amala) asks her children to move to their uncles house in Hyderabad as she got a job transfer. Amma promises to Chinni that she will return in exactly 1-year. The area in which Srinus uncle lives is divided into two areas: the luxurious Gold-phase and the lower class B-phase. Srinus uncle lives in B-phase along with Srinus Aunt, brother-in-law and sister-in-law, grandfather and grandmother.
B-phase is filled with love and humble people including Nagaraj (Sudhakar Komakula), the B-phase gang leader, Abhi (Kaushik Darbha), the small-sized geek, Lakshmi (Zara Shah), who is new to B-phase, and Paddu (Gurshagun Kaur), who is also Srinus 2nd-cousin. Paddus parents, however, are wealthy and her mother (Surekha Vani) is arrogant. Nagarajs father is frustrated with his son as he has no job and always roams around B-phase. Gold-phase is filled with arrogant rich people who have no compassion towards the lower class B-phase. Some of them are Rakesh (Naveen Polisetty), Gold-phase gang leader, short tempered Suresh (Sanjeev), and Ajay (Vijay Devarakonda). Paru (Shriya Saran), the belle and Sureshs girlfriend, is also part of Gold-phase, but unlike her neighbors, she is sympathetic towards B-phase.
Srinu soon faces the Gold-phase rogues and gets into a brawl with them. At this juncture, it is revealed that Abhi is attracted to Paru, which angers Suresh. Chinni and her grandfather are insulted when a prestigious private school denies Chinni an admission, citing her inability to speak English. Her grandfather challenges the school officials and motivates Chinni to learn English. Over time, Srinu and Paddu get close while Nagaraj tries to get close to Lakshmi.
Meanwhile, Maya madam (Anjala Zaveri), the B-phase belle, is being harassed by an anonymous caller. Srinu, Nagaraj, and Abhi find out who he is and catch him. After Maya madam beats the caller, he reveals that he is from Gold-phase. At this juncture, Maya madam thanks the boys and acquaints with them. Meanwhile, the caller brings the Gold-phase gang along and a fight starts, which Maya madam breaks up.
Annoyed with Maya madam, the Gold-phase gang tries to get pictures of her in the bathroom with a camera fitted toy drone but fail to do so. However, while fiddling around with it, they discover Srinus brother-in-law, Ashok, and Rakeshs sister, Sony (Srimukhi), together. They confront the B-phase gang about it and warn them to get Ashok to back-off. However, Ashok brings Sony to his house, intending to marry her. The next morning, Rakesh, his father, and the Gold-phase gang come with the police to Ashoks house to have Ashok arrested. But Srinus uncle (Ashoks father), who is a lawyer, settles the matter citing Sonys consent.
Despite the struggle, Ashoks and Sonys marriage, it is conducted in a simple manner at Ashoks house. From Gold-phase, only Paru shows up to the marriage reception and acquaints with Abhi, which annoys Suresh. She also reveals that she is competing in the Miss India contest. At the reception, Ajay, who came with Suresh and Paru, sees Lakshmi and is immediately attracted to her. Ajay offers Lakshmi a job through Nagaraj, which she accepts as she needs money to pay for her engineering entrance exams. In order to provide a room for the married couple, Srinu is asked to move to Paddus familys outhouse, which helps Srinu and Paddu spend more time together. Angry at Ashoks and Sonys marriage, Rakesh vows to retaliate.
Meanwhile, the parents of Gold-phase rogues plans to usurp the local lake, which geographically belongs to B-phase, after finding out that B-phase using the lake, which connects B-phase to Gold-phase, to sneak into Gold-phase. Rakesh starts retaliating by temporarily cutting power supply and water supply to B-phase. This only brings the B-phase families closer, as the families start sharing food and water and spend more time with each other.
Meanwhile, Abhis dog wanders off into Gold-phase as it is attracted to Parus dog. The Gold-phase rogues trap Abhis dog and unleash their dogs onto Abhis dog. When Srinu and Abhi go to retrieve Abhis dog they are beaten up by the Gold-phase rogues. This again turns into B-phases favor when Paru visits Abhi to apologize. Paru also asks Abhi to teach her magic so that she can it show off as her hobby at the Miss India prelims. Jealous over Parus closeness with Abhi, Suresh talks to Rakesh, who then starts his next revenge.
Rakesh reveals to Paddus parents about her closeness with Abhi. Eventually things get worse when one of Satyas classmates, Manish (Charan Akula), makes a move on her and gives her a phone, seemingly planned by Rakesh. Ajay also starts moving closer with Lakshmi, which troubles Nagaraj. Chinni starts showing signs of missing her mother. When, Gold-phase starts taking over the lake, B-phase manages to get a stay order through Srinus uncle. Following this, Srinu states that Gold-phase is harassing them only because they appear vulnerable. Srinu proposes that they compete in every way possible with Gold-phase and the friends decide that Paddu will participate in the Miss India prelims.
Paddus mother, who is keeping a close watch over her after finding about her closeness with Srinu, initially refuses to let her participate but agrees when Paddu agrees to see prospective grooms. Srinu finds about this and, distraught, distances himself from Paddu, which troubles Paddu. Nagaraj is also angry frustrated that Ajay is moving closer to Lakshmi. He also attempts to learn English through Chinni.
Paru invites Abhi to the beauty contest and flies along with her and the Gold-phase gang to the venue and during the flight Paru and Abhi share each others feelings. The rest of the B-phase friends also go to the contest as Paddus guests. At the contest, Paddu feels overwhelmed and leaves the contest. She confides in Srinu that she is sad because he has been ignoring her and proposes to him, which he accepts. Paru inadvertently reveals her feelings for Abhi through one of her magic acts in front of everyone and goes on to win the prelims.
While returning, Suresh and Rakesh confront Paru about her feelings for Abhi and state that rich should only use the poor and not acquaint with them. Disgusted, Paru leaves them and returns along with the B-phase friends. However, upon returning, Parus father kindly asks her not to see Abhi anymore and she reluctantly obeys.
Later, Nagaraj finally proposes to Lakshmi but she refuses saying that he is unambitious and irresponsible while she aspires to become an engineer. She again starts addressing Nagaraj formally in order to suppress his feelings for her. Dejected, Nagaraj confides in Srinu and Abhi. Abhi also explains that Paru has not been in contact for a while and convinces Srinu and Nagaraj to help him talk to Paru. That night the trio sneaks over to Gold-phase and Abhi manages to talk to Paru. She explains that she is not confident enough to spend a life time with him and is not ready to marry him. But when Abhi asks if her affection towards Abhi was just a Gold-phase plan to hurt Abhi, she slaps him, indicating that she truly loved him.
Tensions between the two areas worsen on Lakshmis birthday when Ajay proposes to Lakshmi and accidentally hurts her when she refuses. Furious, Nagaraj starts to beat up Ajay when everyone in the Gold-phase gang and the B-phase gang get involved. The police arrive and break up the fight. Rakesh files an attempt to murder case on Nagaraj, Srinu, and Abhi and bribes the police. However, Maya madam comes to the rescue with Lakshmi and files an attempt to rape case on Ajay. The police convince Rakesh to drop the charges in order to keep everyone out of trouble.
While returning home, Srinu inquires Lakshmi about Satya, who apparently said was going to Lakshmis birthday party. When Lakshmi denies any knowledge Srinu asks Paddu to check on Satya and Paddu confirms Satya is home safe. While a confused Srinu is talking to Paddu about why Satya would lie to him, Paddus mother discovers them moving closely and furiously throws Srinu out of her house. As Srinu returns to his uncles house, he finds Satya talking on the phone with Manish.
The next morning, Srinu, along with Nagaraj, Abhi, and the rest of the B-phase gang, furiously confronts Manish and beats him up. Satya intervenes and sends Manish away. In a heated argument with Srinu, she confesses that she doesnt want to continue her medicine studies as she feels overwhelmed. After Abhi escorts Satya away, Srinu confides in his uncle about everything that has happened and decides to visit Amma to tell her about everything thats been going on.
Srinu, his uncle, Satya, Abhi, and Nagaraj leave in Nagarajs dads Qualis to visit Amma. Srinus uncle takes them to a hospital where they find out that Amma is suffering with cancer. Doctors inform them that Amma stopped her treatment worried that the expenditure will deprive the money saved for her childrens studies but that the treatment could cure Amma. The group decides not to tell Amma of the events and leave after having an emotional talk with Amma.
Upon returning, Srinu and Satya hide the truth from Chinni and sincerely focus on their education. Abhis love towards his mother grows and lets her pinch his cheeks (which he actually hates). Nagarajs father, however, is angry that Nagaraj took his car without telling him, which has left him without any earnings (as he uses it as a taxi), and kicks Nagaraj out of the house, and gives him an ultimatum to return only if he finds a way of earning money. Nagaraj has always been interested in starting his own small business, which proves difficult as he cant figure out what he should do and can do.
Paddus and Srinus relationship seems to be falling apart as Srinu wants to focus more on his education and his sisters. Nagaraj also has been distancing himself from Lakshmi, which is difficult for her to cope with. Maya madam again comes to the aid and suggests that Nagaraj start his own cab service with the cars that her friend is selling, which cost Rs. 3 lakhs in total. Maya madam helps Nagaraj with Rs. 2 lakhs. Lakshmi talks to Nagaraj and tells him she is not able to be stable without him and starts calling him informally again to rekindle their friendship. She also provides Nagaraj with the jewelry that her father has been saving up for her marriage, which is worth Rs. 1 lakh.
Nagaraj successfully starts his cab service under the name of Laxmi, the only word he can spell in English. Having realized how much Nagaraj loves her, Lakshmi reciprocates his love. Abhi changes back into his old nerdy self, Lakshmi and Satya write their examinations well, and Srinu earns his degree and gets a job. When everything seems to be going well, doctors from Ammas hospital call and inform that Ammas condition is deteriorating and request Srinu to come immediately. Before leaving for the hospital, Srinu goes to Paddus house and asks her parents for her hand in marriage. Although Paddus mother refuses, Paddu speaks up and tells her that she wants to be with Srinu, which convinces Paddus father who lets her go with Srinu. Srinu, Paddu, Nagaraj, and Abhi go to the hospital, where Srinu informs Amma that he got a job and Satya wrote her exams well, and also introduces Paddu. Feeling confident that her children can settle down, Amma resumes her treatment.
Chinni participates in an English-speaking competition against a student from the convent school where she was denied admission earlier, with judges and audience from both sides present. When Chinni is asked to tell about her mother in English, she speaks in English initially but has an emotional breakdown and continues to describe how much she loves her mother and how much she misses her now in Telugu, which moves everyone there to tears, including the judges from the convent school who decide Chinni wins the competition. But Chinni, now that 1 year has passed, insists to see her mother who returns after successful treatment.