Raghava, an unemployed young man, struggles with a severe case of phasmophobia, an irrational fear of ghosts, which causes him to avoid leaving his house after sunset. He prefers to sleep in his mother Sarala's room and insists on her accompanying him to the restroom at night, disrupting the peace of their family. His family includes his widowed mother Sarala, his elder brother Prasad, Prasad's wife Kamakshi, and their children.
One day, Raghava and his friends, who usually play cricket on a nearby ground, are forced to find a new location because construction work is taking place on their usual grounds. Accidentally, they choose an abandoned land that is believed to be haunted by supernatural entities. While attempting to set up a cricket pitch, a strange weather change causes them to abandon the site, but Raghava fails to notice that his cricket wickets have pierced the graves of buried corpses beneath the land, staining them with blood. This event hints at the dark history lurking beneath the land, which later ties into the supernatural happenings.
Meanwhile, Raghava develops feelings for Kamakshi's younger sister Priya, who has come to stay with them. Their growing relationship faces complications as strange supernatural occurrences begin to disturb the family’s everyday life. Sarala and Kamakshi, worried about these bizarre events, secretly consult a priest. The priest suggests performing three rituals to test if a spirit resides in their home. To keep Raghava, Priya, and the children safe from the possible danger, they send them to Kamakshi's maternal home under the pretense of checking on her ill father — a ruse to keep them away during the rituals.
When Sarala and Kamakshi conduct the rituals, their suspicions are confirmed: a ghost indeed haunts their house. They hire two supposed priests to rid the house of the spirit; however, these men are scammers and flee the scene after being chased away, falsely claiming they have exorcised the ghost. Despite their deception, Sarala and Kamakshi believe the spirit has been banished after paying the con men.
Raghava, Priya, and the children return home the next day, only to experience a chilling turn of events that culminate in Raghava becoming possessed by the very spirit haunting their house. His behavior changes drastically — he begins acting effeminate, becomes emotionally detached from Priya, and exhibits increasingly bizarre and unmanly conduct. One night, he is seen wearing a saree and women’s jewelry in public, embarrassing Sarala, who scolds him for his feminine acts. Things take a darker turn when Raghava strangulates a woman named Madhavi to death and unknowingly disposes of her body, which deepens the family's confusion and fear.
Kamakshi eventually witnesses Raghava wearing her bangles and other possessions, leading her to confront him and reveal his disturbing transformation to her family. It becomes clear that Raghava is possessed by three spirits: a woman, an Urdu-speaking Muslim man, and an autistic man. In a panic, the family seeks help from a Muslim exorcist, who manages to expel the spirits from Raghava’s body. The exorcist forces the woman spirit, who identifies herself as Kanchana, to reveal her identity.
Kanchana’s tragic story unfolds as she discloses herself as a transgender woman, formerly named Karthik, who faced rejection from her parents because of her homosexuality. She was later adopted by a Muslim man named Akbar Bhai, who had an autistic son. Despite her own hardships, Kanchana pursued her dream of becoming a doctor, and her adopted daughter Geetha succeeded in earning a scholarship abroad for her postgraduate studies. Kanchana bought land intending to build a hospital for the poor, but her dreams were shattered when an influential MLA named Shankar unlawfully seized her land out of his own desire for Madhavi, a woman he loved. Shankar murdered Kanchana, Akbar Bhai, and his autistic son to cover his crime, burying their bodies beneath her land.
Moved by her story, the exorcist sympathizes with Kanchana but feels bound by duty to capture her spirit. Raghava, understanding Kanchana’s good intentions, decides to allow her to possess him so she can seek justice. In their combined form, Raghava/Kanchana confronts Shankar and his henchmen, who seek refuge in a Narasimha temple—an inviolable sanctuary where spirits cannot enter. Kanchana prays to Lord Narasimha to grant her permission to enter the temple, so she can eliminate Shankar for his heinous crimes. Her prayer is answered as she enters the temple and kills Shankar in a manner reminiscent of Narasimha killing Hiranyakashipu.
Several years later, the family celebrates the inauguration of a hospital built on the very land where Kanchana’s spirit had suffered so much. The hospital stands as a testament to her efforts and hopes for a better future. However, the story ends with a warning note: a few local goons arrive to threaten the family, asking for money for Kanchana, implying that her spirit will return whenever her aid is needed. This ongoing threat keeps her story alive, blending her quest for justice with the supernatural legend she left behind.
