A man who loves his father dearly and protects him from all dangers is shocked to realize certain things that don't seem to be what they are.
The story revolves around a haunted farmhouse Mantra Nilayam, which is owned by Mantra (Charmi). She tries to sell the house but due to mysterious deaths at the house, nobody comes forward to buy it. A professor, however, agrees to buy the property on the condition that someone stay in the house for three months. Hero (Sivaji), a goon who looks after land settlements, is ready to stay in the house for the commission promised once the house is sold. The remainder of the film involves how Hero solves the mystery behind the deaths.
Well Ammayilu Abbayilu is just that and more. The story revolves around Vara Prasad( Vijay Sai) a four foot something midget with a repulsive nasal drawl and equally repulsive chest hair.(His dad has the same and he is proud of how the genetic transfer happened). Vara Prasad is in love with the sexiest girl in the neighborhood, Manju(Vidya). But Manju falls in love with a new boy who moves into the neighborhood, Sanjay(Mohit). Sanjay meanwhile has his eyes set on another girl in the neighborhood, Anju(Debina). Unfortunately Anju is engaged to be married to Rakesh(Sonu Sood). Vara Prasad has no other option but to settle for wannabe witch Ranjani(Swapna Madhuri). The story goes through many a romantic twist and turn before all the characters finally get what they want and the bad guys what they deserve