Royal Circus, owned by Govindan, is on rocks. With the help of his manager Khader, Govindan just manages to run the company, though not in a satisfactory manner. All the members of the troupe live as a family, sharing intimate bonds of love and camaraderie. Abookka, once a clown, has turned insane. As he still insists on putting up the make-up and entering the ring, he is caged, when the show goes on. Babu, the favorite of the troupe is the clown of Royal Circus. Abooka has trained him to become the perfect clown. And he has learned the perfect art of masking his sorrows behind the clown's ever laughing mask. He has been there in the troupe ever since his childhood, looking after the other children, especially Govindan's daughter Kamala. And Govindan has always been saying that Babu is to be his heir and is to marry Kamala. And of course Babu, deep in his heart, has feelings of love for Kamala.The movie takes a turn when Sudheer Misra, the young son of Padmini, a former member of the troupe makes his entry into the camp. Sudheer's arrival marks the beginnings of change. He steers the company out of its crisis and gives it a new form and name as New Royal Circus.
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