''Loukyam'' opens with Venky (Gopichand (actor)) kidnapping the sister of Babji (Sampath Raj), as she is getting married to Bharat (Bharath Reddy (actor)) although she is in love with someone else (Anand Ramaraju). He goes to Hyderabad and waits for everything in his home, Warangal to clear. He stays with his friend, Shyamala (Satyam Rajesh). There he falls for Chandrakala(Rakul Preet Singh), the sister of Sathya (Rahul Dev), a don in Hyderabad. Chandrakala rags other students in the college using her brother's power. After her initial rejection, Venky gets her to reciprocate his feelings. Meanwhile, Babji comes to Hyderabad in order to reach Sippy (Brahmanandam), the driver who helped Venky kidnap Babji's sister. Babji, unaware of the fact that he is traveling in Sippy's taxi, goes around Hyderabad with Boiling star Bablu (Prudhviraj (Telugu actor)), a rising Television star.
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