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Adithya is a seven year old intelligent boy. He has a sister named Laxmi and his parents are Shankar Rao and Parvathi. Adithya's family lives in a village called Ramapuram. Adithya spends his time playing with friends and roaming here and there in the village.
Adithya's maternal uncle Vishwanadham, who lives in a city, is a well to do businessman. His wife is Shantha and Rangayya is their servant. The three of them live in city in a big bungalow. Vishwanadham, who is childless gets impressed by his nephew Adithya's intelligence, decides to get him educated in city. Vishwanadham convinces his sister and brings Adithya along with him to city. There is one more reason for Vishwanadham to do this. When he was facing dire financial crisis, Adithya's father Shankar Rao has helped him out with money by selling off his fields. With that money, Vishwanadham started several businesses and have become a rich man. Out of gratitude towards Shankar Rao, Vishwanadham wants to repay the favor by providing good education to Adithya and bringing him up in to an able man. Shantha doesn't like this and consults her brother Nagaraju. He tells her to harass Adithya, so that he leaves the city on his own. Shantha follows Nagaraju's advice and allots the store room in her house for Adithya to stay. She is always on the look out to harm Adithya, but gets herself affected every time.
Adithya starts feeling lonesome in the house and then a strange parrot becomes his friend. Vishwanadham gets Adithya admitted in a good school. There in the school, is a mischievous boy Veerendra, whom everyone calls as Veeru. Since Adithya has come from a village, Veeru and his friends start teasing him all the time. In this way, Adithya faces harassment in school as well as in the house.
Elsewhere, sorcerer Aghora plans to bring the entire world in to his clutches by acquiring command over evil spirits. Abheera, himself a powerful spirit created by Aghora, doesn't like it and confronts Aghora. An angered Aghora puts him off in a jar and throws it in to the sea.
Not able to bear the harassment in school and at home, Adithya wants to go back to his village, but his parents don't agree with him. Adithya doesn't have anyone to tell his woes and runs away from home one night. While he was loitering on a river bank that night, he finds a sealed jar in the sand. Adithya gets curious to know what is inside the jar and opens it. The moment Adithya opens the jar, Abheera, the one who was put in captivity by the evil sorcerer, comes out of it. Abheera befriends Adithya and comes along to his house.
Nagaraju comes to Vishwanadham's house with the evil intention to usurp the property. Shantha is unaware of it and blindly believes her brother Nagaraju. On his advice, she starts harassing Adithya once again. Abheera notices this and in return he starts troubling Shantha and Nagaraju in many ways. Similarly in school too, Abheera does tit for tat to whosoever that annoys Adithya. Clever Adithya gains a good name in the school. Shantha and Nagaraju are afraid of Abheera and do not dare to trouble Adithya anymore.
On the other hand, Aghora continues to worship 'Kalabhairava' to become the mightiest and gain supremacy over the entire world. Kalabhairava asks Aghora for human-sacrifice of an intelligent boy. Aghora sets out in search of an intelligent boy. At that time Nagaraju, who suspects that some hidden power is protecting Adithya, consults Aghora in this regard. Aghora comes to know that Abheera got liberated from the jar. In his trials to re-capture Abheera , Aghora realizes that the intelligent boy Kalabhairava asked for, is none other than Adithya. Aghora attempts to kidnap and kill Adithya many times, but every time Abheera comes to Adithya's rescue and saves him.
Right at that time when Aghora gets exhausted with his trials to overpower Abheera and kidnap Adithya, he comes to know that time is nearing for Abheera to leave this world and this makes him sigh with relief. He tells Abheera about it and says that the moment Abheera is out of this world, he would perform sacrifice of Adithya at Kalabhairava's altar and make his dreams come true. Immediately, Abheera approaches Gandoba Swamy, who is more powerful than Aghora and obtains a boon to remain on this earth till Adithya is out of danger from Aghora. With this boon, he comes back and after defeating Aghora, bids farewell to all and goes away.
