This action-packed drama is based on Kerala's traditional Vadakkanpattu (The Northern Ballard Folklore). The frictional story is about Kadathanadan Ambadi (Mohanlal) who wants to avenge his father - Thacholi Manikoth Othenan Kuruppu's death and retrieve the sacred sword Bhadravaal and Sacred Thread, which of went missing since the death of Thacholi Othenan.
Kadathanadan Ambadi along with his Mentor-martial arts Guru sets out searching mysterious disappearance of the sword. They suspect a Muslim Manager of their household who went missing since the day.
While searching, they reached Kingdom, whose ruler was a mysterious Black Magician. The Magician Ruler used to send his eagle to search for each's day beautiful lady, to be sacrificed each day for strengthening the King. In that process, the eagle settled house whose lady's marriage was fixed on the day. The soldiers dragged the girl and brought to sacrifice pit, only to saved by Ambadi and killed the King. It is later found that, the girl and her brother were sons of . Moyideen narrates the story, who within the Thacholi family plotted against to stage a coup and get hold of the sword, making thief, who was later sold as slave to Tulunad's King.
The King also holds the key to secret magical cave where the sword was kept. Ambadi sets to Tulunadu, where he lures the princess and get to know about whereabouts of the Key. Ambadi fights against King and his soldiers and grabbed the key from his necklace and proceeds to Magical Cave. He had to fight against Demoness who guards the sword as well as a Water Demoness.
After getting back the Sacred Sword - "Bhadravaal" he returns to Kadathanadu with his Guru, Payyappilly Chanthu. But they were not aware of the fact that his father's sister- Unichala (Sukumaari), her two children (Ganesh Kumar and an unknown actress) and Moosakkuutti (Srinivasan) were captured by Kathiroor Chandrappan ( Kochin Haneefa). Payyappilly Chanthu's ( Prem Nazeer) daughter Kunjilakshmi feels betrayed as she knew that Ambadi was not alone but with a Princess.