Palakollu (Dasari) comes from nowhere and joins Vizag shipyard as a labourer and becomes their mesthri (leader) in no time. He solves the internal issues of the workers there. The local benevolent politician Gopala Krishnaiah (Vijaya Kumar) recommends and gets a big chunk of land piece for the workers. But the local mafia occupies that land forcefully. The rest of the story is all about how Mesthri solves it all and it is also about the background of Palakollu.