Raju (Chiranjeevi), a courageous and spirited young man, is a caregiver to four young orphans (Shamili, Shalini, and Richard Rishi). He is a tourist guide in a picturesque hill station.

One of the children is accidentally injured. An ayurvedic guru suggests the only cure for the child's injury - herbs found only on the banks of Manasa Sarovar. Raju goes to the Himalayas to retrieve these powerful herbs. During the same time, a celestial being, Indraja (Sridevi), the daughter of Lord Indra, happens to visit the Manasa Sarovar. She accidentally drops her ring there. This ring is her passport to Heaven. Raju finds the ring and starts wearing it, oblivious to its divine power. Indraja is unable to enter Heaven as she lost her ring. Brihaspathi, the Deva-guru, instructs her to go back to Earth to retrieve it before the next Kartik Poornima.

In search of the ring, Indraja finds her way to Raju's hometown. Due to her strange language and lack of emotional and social awareness, she is initially considered insane. Her umpteen confessions about her divinity are subject to laughter. Raju and the children take pity on her and provide her shelter in their home. She becomes close to the children and often ends up in trouble trying to take the ring from Raju.

In the meanwhile, Raju is caught up in a moral squabble with an arrogant millionaire, KP (Tiger Prabhakar). KP's goons launch a series of attacks on Raju and Indraja. Raju overcomes them, unaware that the ring is helping him. KP gets suspicious about Raju's supernatural power. KP approaches Mahadrashta (Amrish Puri), a sorcerer who sacrifices women to attain his powers. Mahadrashta discovers that Indraja is a celestial being and wants to sacrifice her to become immortal.

The kids take Indraja on a car ride one day and the car loses control. Raju averts a major accident and blames and abandons Indraja. The youngest of the orphans is critically injured when Mahadrashta's men bomb the school. When everyone's asleep, Indraja puts on the divine ring and saves the child. Raju realises Indraja's true self and repents for his folly. The two realize that they have fallen in love.

Raju uses the ring's power to scare KP and his goons. During this time, Mahadrashta tries to acquire it from one of the kids by hypnotizing her. A monkey grabs the ring and carries it far away, dropping it in the bowl of Kumkum at the feet of a statue of Hanuman. Raju and the kids search for the ring in vain.

Mahadrashta and his men plant false evidence in Raju's home to fabricate the lie that Indraja is a sorceress. Raju and Indraja are pelted with stones and Indraja is carried away by Mahadrashta. The kids discover the ring and Raju sets out to save Indraja. A hypnotized Indraja does not recognize or respond to their calls. Upon coming in contact with the ring, she comes to her senses and destroys KP and his men. Raju kills Mahadrashta, refusing to use the ring, as he believes human power is enough to defeat evil.

The very same evening is Kartik Poornima, the final call for Indraja to return to heaven. Her thoughts are flooded with the loving memories of her time with Raju and the kids. She is caught between her love for Raju and her obligation to return to heaven to remain divine and immortal. Indraja throws away her ring and chooses to go back to Raju to lead a mortal life.

• Sridevi as Indraja
• Chiranjeevi as Raju
• Amrish Puri as Mahadrashtha
• Kannada Prabhakar as K. P.
• Allu Ramalingaiah as Ganga Jalam
• Rami Reddy as Abbulu
• Tanikella Bharani as Dasu
• Brahmanandam as Vichitra Kumar
• Prasad Babu as Narada
• Janagaraj as police inspector
• Sangeeta as teacher
• Master Richard
• Baby Shalini
• Baby Shamili
• P. J. Sharma as sage
• Crazy Mohan
• R. S. Shivaji as Malokam

This is the third time Chiranjeevi and Sridevi paired in a film and the first to be as a mainstream onscreen pair.^[4]

The film had 100-day runs in a number of theaters and a 200-day run in one centre.^[5] it collected over more than 90 million at box office and broke all the records which were set up by past movies and became blockbuster. This movie has also set a new record by managing to pull the crowds to theaters despite floods during that time.

The background score and soundtrack for Jagadeka Veerudu Athiloka Sundari was provided by maestro Ilaiyaraaja. All songs are written by Veturi Sundararama Murthy, who is known for single cards in this era of Telugu movies. "Yamaho" was a remake from Ilaiyaraaja's own "Madurai Marikozhundhu" from the Tamil movie Enga Ooru Pattukaran.

Hindi (as Aadmi Aur Apsara)

1. "Sundar Dekho Lage Bada Shama" - Kavita Krishnamurthy, Amit Kumar
2. "Tumne Is Tarah Maara Dekh Gaya Mai Zamarla Tumhara" - Kavita Krishnamurthy, Amit Kumar
3. "Balama Hai Tu Mere Dil Ka Mehma" - Kavita Krishnamurthy, Amit Kumar
4. "Chamke Tu Chama Chama Chham Chham" - Kavita Krishnamurthy, Amit Kumar
5. "Pehle Bharat Me Korawo Pandawo Ka Raj Tha" - Kavita Krishnamurthy, Amit Kumar
6. "Tanak Dhin Ta, Tanak Dhin Ta" - Kavita Krishnamurthy, Amit Kumar

• Filmfare Award for Best Director – K. Raghavendra Rao
• Nandi Award for Best Music Director – Ilaiyaraaja