Mallikaarjuna, Nagarjuna Akkineni, is born with the divine grace of Lord Siva, and his parents name him Mallikaarjuna as he is destined to accomplish a great work. During his childhood, Malli faces a great tragedy as his parents and grandparents are killed by a huge black panther as they return from Kaasi. This incident leaves his younger sister Sailu, Abhinaya paralyzed from the waist down (Sailu had a talent for dancing before this incident). Malli then develops strong hatred toward Lord Siva.
Meanwhile, a demon named Andhakaasura performs a severe penance to obtain a boon from Lord Siva. Lord Siva blesses the demon with the boon that he will not interfere in the latter's attempt to sacrifice a virgin girl to obtain complete rulership over the three worlds. The demon is advised by his aged friend Maayi that the sacrifice must be made a month having two solar eclipses, in such a way that he has to marry the girl and sacrifice her before the solar eclipse ends. This will render the demon peerless and a master over all the five elements.
The story then shifts to Malli, now an adult whose motive is to help people and take care of his bedridden sister. He falls in love with Dr. Maheswari, Anushka Shetty. There are many scenes where the atheist Malli forces the people of his colony, who include Rudraksha, Ringu Raja, the President, and others, not to worship, on account of his childhood tragedy. Then, one day, Sailu tells her brother that she wants to die because of unbearable pain. Malli questions Lord Siva about his condition and drives away in his car, only to meet with an accident. But Lord Siva intervenes and saves him. Lord Siva calls himself Saambayya, befriends Malli, and goes to his home.
The demon chooses Dr. Maheswari as his target for the sacrifice and prevents the aghoraas (who arrive at the temple) from having access to Mahi, on the first solar eclipse day. Malli rescues Mahi from the Aghoraas, and Mahi's parents entrust Malli to take care of Mahi. Mahi's parents decide to have Mahi marry a relative, Rahul, who is to arrive from the US. This advice is given by a saint known to Mahi's family. On his arrival at the airport, Andhakaasura kills Rahul in the washroom, and possesses his dead body. Andhakaasura enters Mahi's home and kills the three dogs who guard Mahi. The demon also paralyzes Mahi's father, when he learns the truth about him. He also tries to kill Malli and Mahi, on their way to a temple, but Lord Siva intervenes by sending his divine mount, Nandi, who saves Malli. This infuriates the demon, who feels that Lord Siva has not kept his promise. He challenges the Lord, to which he replies that it was his duty to protect his devotee. The demon then decides to oppose Lord Siva, so he kills the saint known to Mahi's family, impersonates him, and convinces Malli, Mahi and others that Saambayya is not a good person by faking his death at the hands to Saambayya. This makes Malli angry at Saambayya, and he returns the ring of friendship to Saambayya.
Finally, Malli convinces Mahi's family that Rahul is Andhakaasura. Then, the demon carries Mahi to the spot of sacrifice and prepares for the ritual. Meanwhile, Malli is advised by the Aghora chief to worship Lord Siva, and he tells Malli that the purpose of his birth is to destroy the demon and the means to do it, as he was the reason for the tragedy in Malli's childhood and Lord Siva saved him as Saambayya. Malli confronts the demon and is initially defeated, but he heads skyward to get a blessing from Lord Siva and finally destroys Andhakaasura by piercing him with the Trident given by Lord Siva.
