A look back into Veta and Palan's past reveals Veta's reason for holding a grudge on Palan; a magical staff bestowed by their father to Palan. Palan gives the magical staff to Veta until it takes him for a ride and Beenu jumps in to rescue.
Palan and Veta's childhood teacher is expected to visit them. The Gurus still dread the strict teacher and recollect that only a coconut delicacy she likes will keep her calm. But the dish is incomplete without the essence of a rare flower that goes on top. Kids from both the gurukul face the challenge of finding the rare flower and reaching the gurukul before she does.
Fed up with Raaka's ignorance and bullying, Dhaana walks out and tries to befriend Beenu and his friends. When Raaka confronts him, a race ensues between them for honor.
On learning the history of the legends of the Kalaripayattu, Beenu gets anxious whether he'll ever be able to reach up to the mark. He comes across two mystical spirits who help him get over his self doubts and achieve his destiny.