The title is suggestive of a grandmother-grandson relationship. Yedukondalu (played by comedian Ali) is looked after by his grandmother Gundamma (Vadivukkarasi) after his mother's death while his father, Srisailam (Tanikella Bharani) is an alcoholic. Ali falls in love with Mahalakshmi (Sindhuri), whose father Neelakanta (Kota Srinivasa Rao) is a greedy person and wants his would-be son-in-law to own a hotel. With the help of his grandmother (she sells off her jewelry) Yedukondalu sets up a hotel. Neelakatna reluctantly agrees to the match but later calls off the wedding after receiving a better marriage proposal for his daughter. Yedukondalu is beaten up and dumped on the railway track. Injured, he nevertheless rescues a girl (Nicole) stuck in a car on the tracks. Together they join hands to set up a successful restaurant. Yedukondalu then distances himself from Mahalakshmi. Whether he ends up with her makes up the rest of the story.
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