Balagam is set in a village in Telangana and it revolves around the after effects on a family and its relations, both with the village folks and among themselves, after the jovial patriarch of the family suddenly passes away.

In a village in Telangana, a family head Komarayya (Sudhakar Reddy), full of life and vigour, passes away unexpectedly. Sailu (Priyadarshi), his grandson (the son of his eldest son), is in debt and believes that getting married and receiving dowry money will help him pay it off. Sailu's engagement has been put on hold due to the passing of Komarayya.—vgpl7