Gopalan (M. G. Soman) is a local owner of cane wholesale business as he purchases the canes from workers and sells them for a high price. But he is a dishonest person as he smuggles in sandalwood too, between cane business. Varuthunni (Madhu) is the chief of workers and they believe Gopalan. Varuthunni's adopted son is Ramu (Kamal Hassan) and he is in love with Sreedevi, (Seema) daughter of Narayanan, (Jose Prakash) co-worker of Varuthunni. Annamma (Sheela) is a widow and she too likes Ramu, even though he is younger to her.

Gopalan gets caught in sandalwood smuggling, but escapes by blaming Varuthunni as the real culprit. The conflict between Varuthunni and Gopalan creates issues among the cane workers and most of them joins hands with Varuthunni as he is an honest person. Workers decides to provide cane only to Varuthunni and not to Gopalan, which hurts Gopalan's business and his equation with his boss. In the meantime Annamma, seduces Ramu and they became intimate.

Gopalan's team destroys Varuthunni's cane stacks and thus issue between the two gets bigger. Sensing the danger of the situation, Gopalan decides to bump off Varuthunni, but this plan was informed to Ramu, who is down by fever by Varuthunni's friend.(Sankaradi) At the same time, Annamma reveals to Ramu that she is pregnant.

Shattered Ramu, unable to take a decision frantically goes in search of his father Varuthunni to save him from the death plot of Gopalan, but he is beaten to pulp by Gopalan's gang. He traces his father, but before he is informed of the plot, Gopalan shoots Varuthunni, but the bullet hits Ramu as he jumps in front of his father to save him. Shattered, Varuthunni kills Gopalan and Ramu in his last moments requests his father to take care of his child, now carried by Annamma, and dies in the lap of his loving father Varuthunni shattering many dreams and hopes.

• Kamal Hassan as Ramu
• Madhu as Varuthunni
• Sheela as Annamma
• Seema as Sreedevi
• M. G. Soman as Gopalan
• Jose Prakash as Narayanan
• Kuthiravattam Pappu as Paramu
• Sankaradi
• Meena
• Kaviyoor Ponnamma
• Junior Sheela
• Kottayam Santha
• Janardhanan as Kurup
• Prem Prakash as Abraham

The music was composed by G. Devarajan and lyrics was written by Yusufali Kechery.