Shot simultaneously in Telugu and Tamil languages, the film was produced by Nagi Reddi and Chakrapani under the banner Vijaya Productions.

The film focuses on a gardener's son who has to amass wealth equal to that of the king of Ujjain to marry his daughter and a sorcerer who has to sacrifice an intelligent and brave young man to Goddess Pathala Bhairavi to gain access to a statuette which can grant any wish.

Pathala Bhairavi is based on Kasi Majili Kathalu, written by Madhira Subbanna Deekshitulu, though it was also partially inspired by the story of Aladdin.

The queen of Ujjain is keen for her daughter Indumathi (alias Indu) to marry her brother Surasena, a timid and mentally unstable person.

When the gardener's son 'Thota' Ramudu assaults Surasena at a concert for irritating the common people, he is summoned by the king to the court.

The sorcerer's apprentice Sadajapa discovers his master dead at Pathala Bhairavi's shrine and brings him back to life with the help of Sanjeevani.

Upon resurrection, the sorcerer makes a deal with Surasena, who was about to commit suicide, to bring the statuette in exchange for everything Ramudu has, including Indu.

Surasena agrees and steals the statuette, then handing it over to the sorcerer which changes the fate of Ramudu and Indu, leaving the former penniless.

With the help of the statuette, the sorcerer brings Ramudu to his lair and tortures him in front of Indu with the hope that she would succumb to his proposal to marry him.

[3] The film, Pathala Bhairavi, was based on a story from Kasi Majili Kathalu, written by Madhira Subbanna Deekshitulu.

[3] Pathala Bhairavi was made as a bilingual film, shot in Telugu and Tamil simultaneously with both the versions having the same title.

[3] He later wanted to cast Raja Reddy in the lead role but replaced him with N. T. Rama Rao in the last minute, who made his debut by playing a minor character in Mana Desam (1949).

[3] Ranga Rao wore costumes reminiscent of a Shakespearean anti-hero and used the catchphrase "Sahasam Seyara Dimbhaka" (Be adventurous man).

[1][12] Muthudhuta Peethambaram, who joined Vijaya Productions in 1945, helped Ranga Rao take on the appearance of a 105-year-old man with the use of make-up.

[19] According to Azim Premji University liberal studies faculty member S. V. Srinivas, Pathala Bhairavi was a blend of folklore and social drama.

[19] Srinivas stated that the depiction of the goddess Pathala Bhairavi before Ramudu sacrifices the sorcerer was reminiscent of the representation of Poleramma worship by Dalits in the film Mala Pilla (1938).

[19] The soundtrack of Pathala Bhairavi was composed by Ghantasala, the lyrics of which were written by Pingali and Thanjai N. Ramaiah Dass for the Telugu and Tamil versions respectively.

[20] Also, a digitally remastered version was released and marketed by HMV in 2003; the album cover depicts a still image from the film featuring Rama Rao and Malathi.

[28] S. S. Vasan acquired the film's Hindi dubbing rights and reshot two song sequences – "Ithihasam Vinnara" and "Vagaloi Vagalu" in colour.

He praised Reddy's direction and observed that the team spirit of the cast and crew in making this film was visible.

[33] On 4 April 1951, Andhra Patrika opined that Pathala Bhairavi was a film made intelligently, and compared the story to that of a train which runs tirelessly without halting for a second.

[36] After the success of the digitised and colourised version of Mayabazar released in January 2010, its makers announced that Pathala Bhairavi would be the next film to be remastered and re-released in colour.

[38] "Pathala Bhairavi's importance lies in laying the groundwork for the emergence in the Telugu film industry of the star-system as we know it today.

[3] The film's story is regularly staged as a play by Surabhi theatre group, known as Sri Venkateswara Natya Mandali.