After leaving the house of Venkatapathi Raja in Chandramukhi, the portrait of Chandramukhi reaches a huge house of Sharath babu and Prabha (as a prize to their daughter in dance competition). After the portrait's entry into the house they observe many signs of evil in their home and finds out the existence of a 30 feet snake in the house. To save themselves from the evil, Rama Chandra Siddhanti and Dr. Vijay (Venkatesh), an assistant to Dr. Eshwar (Rajini) are invited to the house. He starts suspecting all the Daughters of Sarath Babu and how he resolves the problem and keeps Chandramukhi away from this home forms the rest of the story.
Even though deemed as the sequel of the super hit movie, Chandramukhi, Nagavalli did not excite the audience. After the release too, the movie failed to reach expectations and fell flat at the box office.