Naram Garam is the story of Ram Prasad, a man who works for Bhawani Shankar Vajpayee.
Bhawani Shankar, a middle-aged widower is highly superstitious. He strictly follows the advice of his astrologer for every decision he makes. He is also quite hot-headed and a miser. He has a daughter Sumi, who stays with her maternal grandmother. Kali Shankar, his younger brother runs a garage. Like his brother, he too is hot-headed but rather meek in front of Bhawani Shankar.
Ram Prasad goes to his village to meet Masterji, a poor old man who stays with his daughter Kusum. Masterji wants his daughter married off to Ram Prasad. Although Ram and Kusum are in love, Ram declines to marry Kusum due to his financial condition.
Soon after, Masterji along with his daughter move to the city after being evicted from their house by the local village landlord. Meanwhile, Ram Prasad is tasked with looking after the ancestral home of Bhawani Shankar that he repossesses after a 53 year long legal battle. The homeless Masterji and Kusum start staying in the house. Ram Prasad allows them to stay there until he can find an alternative as he himself stays in a makeshift shed.
When the estate manager, Gajanan comes to know of this, he goes to oust the people living in Bhawani Shankar’s house but falls prey to the charms of Kusum. He decides to marry her. Ram Prasad on learning this fact goes to Kali Shankar for help. Kali Shankar is able to dissuade Gajanan from marrying Kusum.
Ram Prasad in order to break off the marriage informs Bhawani Shankar about it. Bhawani Shankar is furious and goes to tell off the family to clear his house. As he meets Kusum, he is enamoured with her. He conveniently remembers his astrologer exhorting him to marry a woman whose name begins with ‘K’. He decides to marry her. The rest of the film follow the antics of the characters as Ram Prasad tries to salvage the situation and be united with Kusum.