Gharana Mogudu is a remake of tamil movie Mannan and it is a drama based movie in which, Raju (Chiranjeevi) is a do-gooder who helps his fellow co-workers while working in Visakhapatnam shipyard, but when his mother suffers a paralytic stroke, he moves back to Hyderabad and looks for a job.
Uma Devi (Nagma) daughter of industrialist Bapineedu (Raogopal Rao) takes over the business from her father and helps it to reach new heights which also sees her head strongness reach new heights as well.
In this scenario, she not only rejects Ranganayakulu's(Kaikala Satyanarayana) son's marriage proposal but insults them when the father-son duo show up at her house. To get their revenge, they send goons to kill Uma Devi and as fate would have it, Bapineedu shows up in the car instead of Uma Devi and is rescued by Raju who asks him for a job which Bapineedu readily agrees to. Raju wins over the employees within no time and takes on the high handedness of Uma Devi and her management. This leads to constant conflict and Uma Devi decides to marry Raju so that he would not interfere anymore. And to this end she plays an emotional blackmail game with Raju's mother and eventually makes Raju agrees to marry her. But Raju continues to trouble her even after marriage. Uma Devi's secretary, Bhavani(Vani Viswanath) is also a friend of Raju which leads to jealousy as well. In the meantime Ranganayakulu with the help of Uma Devi's manager Sarangapani (Ahuthi Prasad) schemes against Uma Devi to sabotage her factory. The rest of film deals with how Raju thwarts the schemes of Ranganayakulu as well as teaches Uma Devi to be humble.