Set in the interior of Telangana, Balagam revolves around the feud between two Ailayya (Jayaram) and Narayana (Muralidhar Goud) families. Saailu (Priyadarshi), a youngster, tries his hand at every business but fails to achieve success. Saailu decides to marry so that he can set off the dowry amount against his debt and escape the wrath of moneylenders. Much to Saailu’s shock, his grandfather Komurayya dies, and during the older man’s final rites, Saailu’s marriage gets cancelled due to a petty argument.