Golmaal Govindam (Rajendra Prasad ) is a petty trickster who cheats and lies to make a false living. One day, he turns himself into a hospital to get free boarding and lodging but comes across a recent patient named Kumari (Sri Bhanu) who has died of heart failure. He decides to take her belongings and make some money of them but instead finds her diary.
Giving into curiosity, he begins reading and realizes that Kumari has come across 3 men who had significant influence in her life.
The first man was her former boss Manmadha Rao (Giri Babu) who had proposed indecently to sleep with her. The second man Raja Shekar (Dileep) who wanted her to pretend that they are married to fool his parents in return for money for her heart treatment. The last man Sudhakar (Sudhakar) is a friend of Raja Shekar and thought that he had slept with Kumari in a drunken state.
The truth is that none of the men had any physical contact with her. Govindam devises a plan to extract money from these men and their families. He writes letters to them stating that Kumari has given birth to their son and named him Gopal. All the three come to meet Govindam on the same day, so he brings a child named Ganapathi (Master Anand) from the orphanage and starts playing Golmaal drama. After a series of funny events, the film ends when Govindam blackmails them into submission.