This multi-layered romantic drama revolves around Tarun (Tarun) and Madhu (Richa Pallod), who are best friends from childhood. They were born on the same day, in the same hospital. Even their parents are best friends from their college years and are now neighbors. Tarun and Madhu are inseparable, so much so that they study in the same college in the same class.
Everyone knows them to be just friends, except Varsha (Varsha), the innocent and clumsy girl who has an enormous crush on Tarun. She notices his feelings towards Madhu and asks him about that, which he firmly and laughingly denies.
Another student Prakash (Sai Kiran), a very talented singer, develops feelings towards Madhu when she spontaneously sings along with him at a college function. He, Madhu and others leave for Bangalore for a week to participate in a few inter-college competitions.
As they are apart for the first time in their lives, Tarun starts missing Madhu very badly, but does not understand his feelings. His maid Rukku (Kovai Sarala), who often teases him and Madhu, starts teasing him that he is missing her because he loves her. Slowly, Tarun begins to realize that indeed, he loves her. He buys a gift and greeting card to express himself when she returns.
Meanwhile he sees a girl from his college slapping her friend because he proposed to her. She, in a distressed mood, says that such guys are a shame towards friendship as they pretend to be friends but really have other intentions. She wishes that every guy could be like Tarun so that a girl and guy could be best friends without any worries. Tarun decides not to express his feelings to Madhu lest she too react in the same.
Madhu returns from Bangalore and tells Tarun that Prakash proposed to her during their stay. She comes to his room to ask him what to reply and by mistake half opens the drawer in which he kept his greeting card and gift. He hurriedly closes it and asks her not to open that and tells her to agree to the proposal if she likes Prakash. She finally agrees to Prakash's proposal but later things start to get a little rough as Prakash doesn't like the intimacy Tarun and Madhu share.
Soon Prakash's grandmother comes to Madhu's house to set the date for their marriage. Her parents agree and marriage preparations are underway. It is decided that after marriage, Madhu will leave with Prakash to USA where his whole family is settled.
It is then that she realises this marriage means breaking her relationship with Tarun and leaving forever. She suddenly dislikes getting married and tries to talk to Tarun about it. He casually says that it is all part of life and inevitable. She asks how can he talk so cold heartedly. She says she wishes she did not have to leave and wonders why she had to love Prakash. She scolds him why he did not get the idea to love her in the first place. At this point Tarun, ruled by emotions, hugs Madhu and cries and runs away from her.
Madhu growns suspicious of his actions and remembers the drawer which he did not let her open. She goes to his room and is shocked to find the card and gift. She says that she does not want to marry Prakash and will tell everyone about them.
Tarun firmly refuses saying that their parents have given them unlimited freedom and it would be very selfish and irresponsible of them to break their trust. At his insistence she goes through the engagement ceremony. After the engagement, Tarun says that he has to go to a basketball match out of the state and will not be there for the marriage. The parents try to convince him but he doesn't listen. Madhu gives him a ride to the station and on the way they remember their entire childhood.
At the station as Tarun is boarding the train, Madhu weeps and holds him. He is unable to leave. At the house, the maid tells their parents everything and they come to the station. They find Madhu and Tarun on the platform stairs and tell them that what they feel is not wrong and it is the way of the world. They assure the love birds that Madhu's marriage to Prakash will cancelled.