Chandramukhi is a dubbed version of tamil movie in which, Kailash (Prabhu) and Ganga (Jyothika) is happily married wealthy couple. Kailash buys an abandoned palatial mansion on the insistence of Ganga. Legend has it that this mansion is a haunted one.
Eeswar (Rajnikant) is the foster brother of Kailash and also an excellent psychiatrist. He visits haunted house and studies it. He comes to know that a Rajah who used to live in the same place around 150 years back. He forcibly got a danseuse called Chandramukhi from Tamilnadu and made her dance in his court.
When she involved herself in an affair with another dancer, Rajah killed Chandramukhi and her lover together. The ghost of Chandramukhi haunts this palatial mansion. The rest of the story is all about how Eeswar solves the problem.