Pallakilo Pelli Kuturu is an Family Romance based movie. In which, Rani (Rathi) is a beautiful village belle raised by her rich grandparents. Her grandparents are so possessive about her that they never even allow her out of their house to attend school. They fix up an NRI bridegroom for her. But he finds that she is too raw to be his wife in USA. Hence he wants her to modernize a bit. Then they join Rani in a grooming school called 'Pallaki' that teaches etiquette, cooking, dressing etc that grooms raw people into well mannered and sophisticated people.
Gowtam (Gowtam) is a happy-go-lucky guy. His family (grandmother and parents) run the 'Pallaki' grooming school. Gowtam falls in love with Rani at the very first sight. They become good friends as well. Later on he realizes that Rani is due to get engaged to an NRI. Would Gowtam still try to steal her from NRI or let her marry NRI forms the climax of the film.