Katha Parayumbol movie revolves around Balan (Sreenivasan) who is a middle-aged man with three kids in school. He had eloped and married his sweetheart and settled in this hilly village, far from the urban world. He is an object of ridicule for all and sundry. His kids are nearly thrown out of the school for non-payment of fees. His wife has no idea where their next meal will come from.
Balan’s only defence mechanism against the harsh existential realities is his wit and his barbed tongue.
But, all this changes when superstar Ashok Raj (Mammootty) makes an appearance in the village for a film shoot. Ashok is supposedly Balan’s childhood friend. So the whole village converges around Balan seeking his favour for a meeting with the superstar. Balan is reluctant to approach the star thinking that Ashok may have forgotten his lowly friend in these intervening years.