Chudegudu is a comedy where Kethi Reddy is a villain who keeps tormenting his wife, Hema. His daughter Swetha elopes with Jayanth who is a son of a laborer. Hema helps them with the escapade. The lovers then end up in a village and Brahmanandam and Kovai Sarala provide them shelter. But the old lady Vaddivukkarasi, dislikes the idea of giving the young couple shelter, and a then a flashback reveals the reason behind her ire.
The rest is how the couple keeps running from Reddy's goons and, whether the chase ends into a happily ever after climax, forms the crux of the story.