Raju (Chiranjeevi) is a do-gooder who helps his co-workers in a Vishakhapatnam shipyard, but when his mother suffers a paralytic stroke, he moves back to Hyderabad and looks for a job. Uma Devi (Nagma) daughter of industrialist Bapineedu (Raogopal Rao) takes over the business from her father and helps it to reach new heights which also sees her head-strong ways reach new heights. In this scenario, she not only rejects Ranganayakulu's (Kaikala Satyanarayana) son's marriage proposal but insults them when the father-son duo show up at her house. To get their revenge, they send goons to kill Uma Devi. As fate would have it, Bapineedu shows up in the car instead of Uma Devi and is rescued by Raju who asks him for a job which Bapineedu readily agrees to.

Raju wins over the employees in no time and takes on the high-handedness of Uma Devi and her management. This leads to constant conflict and Uma Devi decides to marry Raju so that he will not interfere anymore. To this end she emotionally blackmails Raju's mother and eventually makes Raju agree to marry her. But Raju continues to trouble her even after marriage. Uma Devi's secretary, Bhavani (Vani Viswanath), is also a friend of Raju which leads to jealousy. In the meantime, Ranganayakulu, with the help of Uma Devi's manager Sarangapani (Ahuti Prasad) schemes against Uma Devi to sabotage her factory. The rest of film deals with how Raju thwarts the schemes of Ranganayakulu and teaches Uma Devi to be humble.

• Chiranjeevi ... Raju
• Nagma ... Uma Devi
• Vani Viswanath ... Bhavani
• Raogopal Rao ... Bapineedu
• Kaikala Satyanarayana ... Ranganayakulu
• Brahmanandam ... Appanna
• Sharat Saxena ... Ranganayakulu's son
• Ramaprabha ... Uma Devi's servant
• Shubha ... Raju's mother
• Ahuti Prasad ... Sarangapani
• Ponnambalam ... Veeraiah
• Sakshi Ranga Rao ... Bhawani's father
• Chalapathi Rao ... Chalapathi
• P. L. Narayana ... Narayana
• Disco Shanti ... item number in the song 'Bangaru Kodi Petta'
• Gautam Raju

The music and the background score of the movie is composed by M. M. Keeravani, the lyrics for the songs are by Bhuvanachandra and M. M. Keeravani. The soundtrack was highly popular and is regarded as one of the evergreen classics in Telugu Musical Industry. Especially the tracks "Bangaru Kodi Petta", "Kitukulu teesina", "Hey Pilla", "Pandu Pandu" were huge chartbusters and are evergreen yet now. The song "Bangaru Kodi Petta" was later remixed by M.M. Keeravani in the 2009 Telugu blockbuster Magadheera.

Filmfare Award for Best Film - Telugu - K. Devi Vara Prasad

• Gharana Mogudu collected a distributors' share of Rs.13.5 million in its opening week.^[7]
• The film had a 100-day run in 56 centres^[8] and a 175-day run in three centres^[9] including a 183-day run in Sandhya 70mm, Hyderabad.^[10]
• Gharana Mogudu collected a share of Rs.60 million in 50 days and became the first Telugu movie to collect a distributors' share of Rs.120 million.
• In Bangalore, the scene was no different. All the shows right from the day of its release were house full continuously for 105 days at Santosh-A/C DTS theatre.
• Gharana Mogudu had a 183-day run at Sandhya 70MM, Hyderabad, collecting a gross of Rs. 45,75,358.
• The magnitude of the film's success was such that Chiranjeevi became the highest paid actor in India. The WEEK magazine came up with an article "Bigger Than Bachchan".
• It was dubbed into Malayalam as Hey Hero. It was successful in Kerala, too.^[11]