Bala Bharatham is the story of Pandavas and Kauravas during their childhood days. Kunti (Anjali Devi) and Bheeshma (S. V. Ranga Rao) stand as spectators, while Shakuni (Dhulipala) acts as a catalyst to the rise of the rivalry between Pandavas and Kauravas that resulted in the great Mahabharata war later.

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.