Radha, a wealthy young woman, visits Suseela, her friend in Madras who is participating in a contest, and writes a song for her.

The paper on which Radha has written the song blows away and lands near the neighbouring house, where an aspiring singer Ravi Kumar and his friend Selvam live.

When Ravi meets Radha for the first time at the television studio, he composes and sings a song praising her in the programme, which is publicly appreciated.

Radha uses her contacts to get Ravi work singing for a film; he achieves instant success and fame, and moves to a spacious house.

Mohan, a doctor, tells Radha and her father, who are waiting for him, Ravi is his patient and has been diagnosed with terminal blood cancer.

According to Kovaithambi, in 1981 when he was a rising politician, R. Sundarrajan and his friend Sirumugai Ravi approached him, narrated a story and suggested he produce it as a film.

Though he liked the story, Kovaithambi was hesitant to enter the film industry but agreed after being encouraged by fellow politician C. Aranganayagam.

[2] The filmmakers wanted to feature mostly newcomers in the film but none came forward because Kovaithambi was a politician and Sundarrajan was a first-time director.

[11][12] According to K. P. Sunil of The Illustrated Weekly of India, Payanangal Mudivathillai was the first Indian film to have "larger-than-life cut-outs" of its composer.

[2] A private screening was earlier held for M. G. Ramachandran, the Chief Minister of Tamil Nadu, in the second week of the month.

[15] In a review dated 21 March, the Tamil magazine Ananda Vikatan said the beauty of the screenplay is stunning, and the songs composed by Ilaiyaraaja and the singing of Balasubrahmanyam are the two pillars of the film, giving it a rating of 48 out of 100.

[16] On the same day, Thiraignani of Kalki too printed a positive review, primarily for Mohan and Poornima's performances, the cinematography and the direction.