Kannady Kadavathu movie tells the story of two friends, Karunan (Murali) and Ponappan (Lalu Alex) who are employed in the job of collecting sand from the river bed. When Karunan, a ruffian, is accused of murdering his wife, his children desert him. To get them back, he builds a house and asks them to come but they refuse. He goes berserk. His only companion is Ponnappan.