Naagarahaavu movie revolves around a short tempered, yet affable college student Ramachari. Ramachari is unpopular in the whole town of Chitradurga as an ill-tempered boy and is disliked by many people in his college. Ramachari being caught in a classroom while trying to copy in an examination. The college principal suspends him for copying in the exam. Ramachari is humiliated and angry at this action and later at night Ramachari throws stones at the principal's house and when the principal wakes up and comes out of his house, Ramachari ties the half-naked principal to a pole and runs away satisfied.
The next part of the story is about the two women Almelu and Margaret who come into Ramachari's life and how the teacher Chamayya (Ashwath) influences Ramachari's decisions in these relationships. The teacher tries to bring Ramachari in the "conventional way of life", but he errs and Ramachari's life is destroyed.
The movie ends with Ramachari and Margaret committing suicide and the teacher falling off the mountain of Chitradurga.