Sita's brother Bangaram (Chalam) comes from the town and eyes Bangari (Reshmi Roy), Kanakayya's deaf and dumb servant Devudu's (Chandramohan) sister.

Kanakayya suspects that Sita is in love with Devudu, and in a fit of rage, he kills them both one day.

Pranam Khareedu was based on play of same name of C. S. Rao who wrote dialogues also for the film adaptation.

Though Chiranjeevi made his acting debut with Pranadhirallu, it was Pranam Khareedu which became his first to be released.

Kranthi Kumar who saw Chiranjeevi during the shoot of Pranadhirallu offered him the role of Narasimha after his assistant recommended him.