Mullankolli is a rustic remote village in northern Kerala. Velayudhan (Mohanlal) is an orphan who came floating during floods and he was brought up by Valiya Nambiar (Madhu) a do-gooder and a feudal landlord of the area.
Velayudhan grows up into a riff-raff, drunkard and a local rowdy with a good heart. He hates injustice and has set his own rules for the villagers who are scared of him including local moneylender and politician - Member Kurupu (Jagathy) and Gopinathan Nambiar (Siddique), son-in-law of Valiya Nambiar who wants to rule over the village in his own way.
When Velayudhan plants a staff, it means that it has his stamp of authority. The only man who he listens to is Valiya Nambiar and to a certain extent Kelappan (Innocent) who looked after him as a child. The villagers including Kurupu and Gopinathan regularly bring goondas from outside the village to eliminate Velayudhan but they fail.
There are three women in his life - a prostitute Kunnummel Shantha (Sona Nair), an old flame Janaki (Devayani) and Kelappan's daughter Leela (Bhavana). However, things turn bleak for Velayudhan due to the machinations of Gopinathan, forcing Velayudhan to take some tough decisions about his life. How will he deal with the challenges that he is faced with and defeat his enemies?
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