In the 1990s, labourer Pushpa Raj decides to smuggle red sandalwood with his friend Kesava. He moves up the ranks in smuggler Konda Reddy's group while evading DSP Govindappa. Konda's brother Jaali hates Pushpa for getting more attention from his brother. Konda's boss, Srinu, entrusts Konda to keep his contraband safe from the Police Department. As Jaali is deemed incompetent for task, Pushpa is assigned. Jaali intentionally sabotages Pushpa so he'll get caught by the police, but Pushpa and Kesava use their quick thinking to avoid getting caught. Pushpa finds out Srinu is scamming his workers to gain a much higher profit for the sandalwood and tells Konda, but he refuses to go up against the powerful Srinu.
Pushpa falls in love with Srivalli, and an engagement is arranged. During the ceremony, Pushpa's elder half-brother Mohan makes a scene, revealing Pushpa was born out of wedlock. In the ensuing scuffle, Pushpa's mother gets hurt, which motivates him to make his way up. He bypasses Srinu, and is able to get a better deal for the wood that he agrees to split with Konda. Jaali discovers Srivalli's father is a mole for Govindappa; lusting after Srivalli, Jaali blackmails her to sleep with him to save her father. Srivalli tells Pushpa, who beats Jaali and leaves him paralyzed. Jaali doesn't tell Konda who beat him, wanting to deal with Pushpa himself, but Konda discovers the truth on his own.
Konda attempts to murder Pushpa, but Srinu's brother-in-law and men attack them, killing Konda Reddy. Pushpa rescues Konda's younger brother Jakka Reddy, rekindling their partnership and murders Srinu's brother-in-law. MP Naidu arranges a truce between Pushpa and Srinu, but after discovering about the latter's scams, he appoints Pushpa to replace Srinu. As time goes by, Pushpa takes control of the entire syndicate.
Govindappa resigns, and Bhanwar Singh Shekawat takes charge. Pushpa offers a bribe to Shekawat, but Shekawat ridicules Pushpa due to arrogance. After this incident, Pushpa ostensibly turns meek and submissive towards Shekawat, but on the day of his marriage, Pushpa gets his revenge on Shekawat, revealing that he promised his mother he would stay safe and not get into trouble before his wedding muhurtham. Pushpa forces Shekawat to strip semi-naked while he does the same, boasting that he derives his prestige and power from his own self, while Shekawat is nothing without his uniform. Pushpa leaves to marry Srivalli while a humiliated Shekawat walks home, and his dog fails to identify him, like Pushpa predicted. Enraged, Shekawat kills the dog and burns Pushpa's bribe, swearing revenge. Pushpa, in his wedding mandapam, tells Srivalli that the action has just begun.
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