Deserted by his mother, teenaged Raju is adopted by Beeranikka, a Muslim ferryman. Raju soon starts accompanying Beeranikka in ferrying people. One day, he meets a young girl who is returning to her native town Kozhikode after the death of her mother. The girl invites Raju to Kozhikode where she would be staying with her father and uncle. Not interested in leaving the ferrying job, Raju rejects the invitation. A few days later, he finds himself in possession of an ornament which he thinks belongs to the girl. He travels to Kozhikode to return the ornament and finds the girl after many days of search. The girl does not recognise Raju and says the ornament does not belong to her. Disheartened, Raju returns to the ferry.
Sudhi (Mohanlal) who is a poor auto-rickshaw driver who meets Meenakshi (Rekha) who is the granddaughter of a well to do family. Sudhi and Meenakshi falls in love for each other and faces strong opposition from her family but the lone support of her grand father, Krishna Pillai (Thikkurisi Sukumaran Nair).
In the 1950s a village in Kerala is preparing itself to be included in the nation's electric grid. Things are looking up for villagers and everyone is optimistic about the progress that electrification will bring. However soon some trouble brews starting with petty quarrels on trees being felled for the power lines. A series of unfortunate events follow the electrification as the village comes into terms with rapid modernization.
An ancient temple is neglected to ruins and is tended only by the Velichappadu. When the priest goes on a leave, a young man takes up his job and forms a relationship with the Velichappadu's daughter.