Prakash Kovelamudi, son of popular director K Raghavendra Rao, tried his hand in acting but failed. Later, he took up film direction and earned good recognition by earning a national award for a film produced by Rana Daggubati, who is now established as a hero with Leader. After achieving an award, now he is making an attempt for a reward by bringing out a film with the co-operation of Walt Disney Pictures. He penned an excellent folklore story, and in order to translate his imaginative skills on the celluloid, he needed not only money but technical expertise and hence he entered into an agreement with Walt Disney and achieved what he wanted through Anaganaga O Dheerudu.
Irendri (Lakshmi Prasanna) is a sorcer player, who captures sarpa sakthi (serpent power) and tries to terrorise people of Anga Rashtram. So, a guru arrests her and doesn't allow her to play with the lives of people and destroys her. Even before she was destroyed with the sarpa sakti, Irendri takes her soul away and traps in a locket. Though she dies, her soul (atma) lives in the locket. Her great great grand daughter is Priya (Shruti Hassan) and she lives as a gypsy.
However, she too possesses some magical powers, as she was born into a sorcerers’ family. Yodha (Siddharth) is a person who always lures girls and romances with them at whenever there is opportunity. He is smitten by Priya’s beauty and falls in love with her. Sudigundam (Ravibabu) is a local goon and he attacks the gypsies’ village. Yodha prevents him and defeats him in a fight. However, Sudigundam makes another attack and ties the hands of Yodha and sets afire the entire village.