Dharmapuri movie revolves around Sivaram (Vijayakanth) who lives in exile in Rameswaram with his parents, father Meiyappan (Vijaykumar) and mother Sumithra. Meiyappan is a sincere farmer and a head of a village in Dharmapuri.
He strongly believes in traditional industry and encourages his fellow people to take up businesses like making clay pots and artifacts instead of selling their lands to large builders in cities, who want their lands for its rich sand soil. To gain confidence among his people, Meiyappan donates his 200 acres of land for the benefit of the village.
Meiyappan's brother, Mokkayam (Manivannan) and his two wicked sons Peruchalikaruppu (Bobby) and Silanthikaruppu (Raj Kapoor) grab the gifted land and give it on lease to local MLA Konda Mookan. Fearing for his life, Meiyappan with his family flees the village.
Sivaram along with Shanmugham (M.S.Bhaskar) come to the village. Here, Sivaram meets Valarmathi (Lakshmi Roy) and romance begins between the two. The remaining film is about how Sivaram fights single handedly to redeem the village from the treacherous hands.