RAJA (CHIRANJEEVI) is an orphan, being brought up by Raghu and other people of the Basti. Raja (the Hero) returning to Basti after writing his examinations. On his way back he meets Sri Kanya, the Doctor and Kiran (Police officer) who is in disguise as a snake charmer.
After returning to his native place, Raja finds that Sarbhoji, Sher Singh and his men with the help of Kadra (CHNDRA) Swamy (AMRISH PURI) are harassing people. During one incident, all the people of Basti go to the Court but, to Raja's disappointment, they lose it. Basti's people become little annoyed with that. Meanwhile Raja gets a letter from the Government that he has passed his I.A.S. and has become the Collector of that place. But Raja tears off the letter and takes vow to fight with the Villains for the sake of the poor people and becomes KHILADI NO. 1.
Sri Kanya (RADHA) comes to know about Raja's disguise and promises that till he succeeds in his mission she will not reveal the truth to anybody. Kiran (VIJAYA SHANTHI) a Police Office in disguise goes to Kali Pahadi's to catch hold of the smugglers and Khiladi No. 1.
Bhavani (SHARDA) is released from the jail after 14 years. Sandhya (Judge) wants to talk to her but she refuses. Bhavani goes to forest to take revenge with Sharbhoji (RAO GOPAL RAO) but to interference of Kadra swamy could not take. They want to kill Bhavani, but at the correct time Raja comes and saves her.
Raghu (SATHYANARAYANA) reveals Raja that she is his mother. In the hospital Sandhiya Devi and Raghu tells about the past story, that Raja's father was Sandhya Devi's brother. They also tell how they have killed his father and sent Bhavani to Jail. Raja promises his mother and aunty that he will take revenge. Both Sri Kanya and Kiran love Raja at the end to Kadra (CHANDRA) swamy who plays a double roles as S.P., Sri Kanya ...............?
In the end Raja succeeds in taking revenge with the Villains and kills them.
[From the official press booklet]