Krishna Babu is a action oriented movie in which Krishna Babu (Balakrishna) is the man of jamindar clan in Krishnapuram, who is considered as the most important man in that village. Vijay Babu (Abbas) is his brother doing his graduation in Hyderabad. Chandra Babu (Chandra Mohan) is the maternal uncle of KrishnaBabu who stays along with him to take care of him. Krishna Babu meets the sensuous damsel Rama (Meena), the daughter of the new head master. Rama and KrishnaBabu fall in love over the period of time.
Meantime Vijay Babu is in love till his neck with his classmate Shilpa (Raasi) in Hyderabad. Rama and KrishnaBabu are all set to get engaged to each other. Rest of the story is about how all ends well.