Raamanam movie is about a progressive thinking man, Pookoya Thangal (Jagathy Sreekumar) who did not believe in caste or creed. One day a woman named Neeli was ostracized from the Hindu society. The reason was that she became pregnant before marriage. Pookoya Thangal gave her a place to stay. It was his servant Bappu Kanaran's house. At the same time Thangal's wife Aatta Beevi (Margi Sati) was also pregnant.
After some months Neeli gave birth to a baby boy and she passed away. Aatta Beevi gave birth to a baby girl. Neeli's son was named Kunhali and Thangal's daughter's name was Pookkunhi Beevi. Kunhali stayed in Thangal's house. Thangal's wife hated Kunhali's presence and he was sent to Pathu's house . Kunhali was brought up by Pathu.
Both Kunhali and Pookkunhi reached in the stage of higher studies. Kunhali joined for M.B.B.S and Pookkunni Beevi for Degree. At this time Thangal made his daughter to learn Nangyar Koothu, a hindu ritual art form. After she learned Koothu, a performance was organised in a temple. Some members of the Hindu community did not tolerate the act and opposed.