An ancient painting of Chandramukhi, alias Nagavalli, is distributed as a prize to Bharatanatyam dancer Gayathri, her husband, and her family.

Gayathri lives in Tirupathi with her husband, father Shankar Rao, mother Parvathi, sisters Geetha who tries to repaint the original portrait of Chandramukhi as a part of her painting hobby, and Gowri, maternal uncle Appa Rao, his wife, and maternal cousins Pooja and Hema.

One night, Dr. Vijay goes to the outhouse as he hears anklet sounds and finds that Gayathri is still alive but became mentally disturbed after the accident in which her husband died.

It is revealed that the family decided to hide Gayathri from the public, fearing that Geetha and Gowri would not get prospective suitors for marriage.

Suspecting that Gayathri is the one possessed by Chandramukhi, the Rao family along with Vijay and the Acharya, take her to a nearby temple where they find strange paranormal occurrences but fail to exorcise her.

On the day, Acharya exorcised Ganga, Chandramukhi's room was open and she fleed in guise of a serpent to her home town Thanjavur.

Vijay finds that Nagabhairava is still alive with his astrological profile and deduces that he might be living like a sage using black magic.

Vijay tells that she isn't possessed but is just mentally disturbed and cures her post-traumatic disorder successfully and reveals to everyone that Gowri is the one affected by Chandramukhi and proves it.

They find that Gowri was in a fragile mental state due to Gayathri's trauma and a close friend's death and did research about people who live longer than normal when she came across the legend of Chandramukhi and Nagabhairava and empathizes with their story.

The audio launch was attended by D. Ramanaidu, Rajamouli, Puri Jagannadh, VV Vinayak, Rana, Nani, Ileana, Praneetha, KL Narayana and other film celebrities, along with Nagavalli's cast and crew.

123telugu.com gave a review of rating 3/5 stating "If Nagavalli can be watched separately from Chandramukhi it is a very entertaining Telugu movie.

Although the treatment resembles something on the lines of Krishna's old film Ave Kallu', this proves to be interesting and gripping till the end.