Major Chandrakanth (NTR) is a sincere military soldier and freedom fighter who always fights for justice. He retires from the military and returns home to his family in Hyderabad. His son Shivaji (Mohan Babu) is a smuggler who works for MP Gnaeswar Rao (Amrish Puri). Major Chandrakanth, not knowing he is a smuggler, wishes to see his son and grandchildren join the military and become righteous like him. He gets into many clashes with Gnaeswar.One day when Shivaji questions his father of why he still fights for justice when he's retired, he tells how important justice is. This inspires Shivaji to quit smuggling but at the same time Chandrakanth comes to know of him being a smuggler. Shivaji is sent to jail but he is given a bail. Major Chandrakanth is annoyed of knowing his son as a smuggler. Shivaji then reveals to him why he became a smuggler. He actually saves Ramya Krishna's life when she is being kidnapped by a bunch of goons. Ramya Krishna thanks and brings him to her home. That's when she reveals to him that she's a smuggler and he just helped her smuggle a bunch of diamonds. She asks him to join but he formally rejects it. Before he leaves, she says one day smuggling will become necessary for him.One day Shivaji's drunken brother-in-law kills a poor villager as people try to avenge the villager's death. They demand a ransom of 1 million in 2 days. Shivaji and his family not being able to collect that much money in any circumstances, he decides to become a smuggler and pays off the ransom. After hearing this Major Chandrakanth still doesn't accept this and Shivaji leaves the house wanting to make his father proud. He makes one of Gnaeswar Rao's sons arrested as Major Chandrakanth forgives Shivaji. Ramya Krishna supports Shivaji because she became a smuggler so that Gnaeswar Rao could let her see her kidnapped father, who was actually killed by him long time back.Meanwhile, Chandrakanth is in search of Nagma, daughter of his friend who was killed in an attack as he says his last words that he wants his son married to his daughter. Nagma is in search of Shivaji, her husband after he ties the mangalasutra considering them wife and husband. Shivaji only tied it to escape from the police when he was smuggling a bunch of diamonds earlier in the film and leaves her. Major Chandrakanth comes to know of this but luckily accepts the marriage. Gnaeswar Rao frees a terrorist Major Chandrakanth fought against earlier and teams up with him. Ramya Krishna witnesses this and finds out about her father's death until she is killed by them. Before she dies, she reveals that Gnaeswar Rao and the terrorist are planning a series of bomb blasts throughout India. At the same time, Major Chandrakanth's wife Savitri (Sarada) is suffering from blood cancer and she later on dies. Gnaeswar Rao blackmails this as Major Chandrakanth and Shivaji seek revenge. The film ends with the arrest of Gnaeswara Rao and them killing his sons. During this process however Major Chandrakanth is shot and also dies.