Sushant, who hails from the family of film artists like Akkineni Nageswara Rao, Nagarjuna and Sumanth, has a passion towards acting. He is also the nephew (sister's son) of Nagarjuna like Sumanth. In order to promote him as hero, his mother A Naga Suseela in association with another producer Chintalapudi Srinivasa Rao to produce Kalidasu. Annapurna Studios came forward to present the film, though the film is being made under the banner of Sri Nag Corporation. Tamanna, who bagged a hit like Happy Days recently, played the female lead. The story for the film was penned by the producer itself. Though the first half of the film is routine, the director is able to show some novelty with twists and mind game in the second half.
Kalidasu (Sushant) is the son of a sincere police officer (Nagababu), who gets killed in the hands of a factionist (GV). However, Kalidasu kills that factionist and escapes from Rayalaseema and reaches Guntur.Kanakadurga (Jayasudha) brings him up along with her son Dev (Kumar). Kalidasu helps Dev to continue his studies in Hyderabad, by turning himself a car-lifter. Baba (Chalapati Rao) buys such lifted cars. His son Basha (Sunil) also becomes his good friend. Once, Kalidasu lifts a car and finds a girl hiding in it. The girl says that her name is Mirchi (Tamanna) and pretends that she is a lunatic. But Kalidasu does not believe that she is lunatic and suspects her that she is pretending. Once some goons led by Pratap and Ajay (Vinodkumar and Ajay) reach Guntur and take away Mirchi after killing Basha.
Kalidasu goes to Hyderabad after noticing Dev's photo with Mirchi in her mobile phone. However, after going to the college, the principal (Tanikella Bharani) reveals that Dev is killed by the goons led by a political leader (Rajan P Dev) and his henchmen Pratap and Ajay to save the college maintained by Archana @ Mirchi. Kalidasu decides to take revenge against the killers of Basha and Dev. Then Kalidasu starts his mind game and plays a trick, which makes Pratap to kill his own brothers. Later, Ajay kills his brother-in-law Pratap. In the climax, Kalidasu's trick again makes Ajay meet his own death. The film ends on a happy note.