Balu (Pawan Kalyan) is careless youngster who is bad at studies. He is the youngest son in his family and his father always scolds him, but his brothers, uncles and mother dote on him and so do his brothers. On one occasion, Balu sees Anu (Keerthi Reddy), a US returnee on the road and falls for her instantly but couldn’t meet her. Anu, comes from US to spend time with her grandfather (P.J. Sharma).
Anu is impressed with Balu when he saves a kid's life on the motorway; she tries to get his autograph but fails. Balu leaves for Ooty for his studies and accidentally meets Anu on the way when his taxi breaks down. Anu gives Balu a lift and leaves her driver to help the taxi driver. While on the way they meet with an accident and Balu saves Anu. Anu thinks that Balu sacrificed his life in saving her. But he will be rescued by someone. Later they become good friends. Slowly Balu develops feelings for her but could not express it to her. At the same time, Anu gets admission into Harvard University (USA) and is about to leave. What happened next forms the rest of the story?
Tholi Prema is the prime reason for Pawan Kalyan’s tremendous following in youth. The movie aptly showcased the mindset of current day youth and immediately youngsters connected to it. The movie was a huge hit then.