Vendor Kutty (Kottarakkara Sreedharan Nair), a wealthy villager, is jealous and scheming to marry his daughter Lucy (Shanthi) to the richest bachelor of the town. He is, however jealous of Luke (T. S. Muthiah), the neighbour, who is kind-hearted village school teacher and has a daughter Chinnamma (Miss Kumari), of marriageable age.
Thankachan (Prem Nazir) is the rich man of the locality and the prospective groom of Lucy. When he meets an accident, both Chinnamma and Lucy happen to be there and Lucy rushes home to get some cloth for a bandage, the simple hearted Chinnamma tears her only upper cloth and offers first-aid to Thankachan. This simple act makes a bond between the two and Thankachan in turn offers financial help to Chinnamma when her father is taken sersiouly ill.
Chinnamma is being engaged to the Beeri-maker, Chakkaravakkal (Bahadoor), whose father demands a big dowry. Luke makes herculian effort to raise money but Kutty is determined to see that he is unable to secure the loan.
Chinnamma's marriage is fixed for the day when Lucy is to be betrothed to Thankachan. The marriage party is at Luke's door. On the instigation of Kutty, Vakkan's father insists on the promised dowry. But the poor father is unable to produce it. The marriage stands dissolved.
In the neighbourhood, Thankachan has come for his betrothal with Lucy. He comes to know of Luke's predicament. On the spur of the moment he decides to marry Chinnamma and the story ends on a happy note.