Matthew (Krishna) is a jobless graduate who faces problems due to his religion. On the advice of his friend, he pretends to be Muthaiah and joins Sri Rajeswari Vilas Coffee Club and even starts tuitions to the owner's daughter Rajeswari (Jayaprada). Things change when Rajeswari falls for Matthew and some unexpected secrets are exposed.

Gundamma (Suryakantam), a rich widow ill-treats her stepdaughter, Lakshmi (Savitri) as a maid and decides to get her married to a vagabond. On the other hand, she hopes to get a rich son in law for her daughter Saroja (Jamuna). Knowing her evil plans, two brothers Anji (NT Rama Rao) and Raja (Akkineni Nageswara Rao) marry the half-sisters and teach Gundamma a lesson.

MT Rao (NT Rama Rao) and Mary aka Missamma (Savitri) portray as a couple and join a school run by Gopalam (SV Ranga Rao) to make a living. Raju (ANR), Gopalam's nephew and also an amateur detective finds resemblances between Gopalam's missing daughter Mahalakshmi and Mary. The story revolves around the troubles they face as a fake couple and discovering whether Mary is Mahalakshmi.

Pelli Chesi Choodu is a satirical comedy that deals with the negative effects of the dowry system in India through the marital life of Venkata Ramana (N.T. Rama Rao) and Ammadu (Varalakshmi). The film showcases various characters playing the good and bad in marriages, and how the newlyweds suffer the consequences of conspiracies for extracting alimony.