Loukyam opens with Venky (Gopichand) kidnapping the sister of Babji (Sampath Raj), as she is getting married to Bharat (Bharath Reddy) although she is in love with someone else. He goes to Hyderabad and waits for everything in his home, Warangal to clear. He stays with his friend, Shyamala (Satyam Rajesh). There he falls for Chandrakala, the sister of Sathya (Rahul Dev), a don in Hyderabad. Chandrakala rags other students in the college using her brother’s power. After her initial rejection, Venky gets her to reciprocate his feelings. Meanwhile, Babji comes to Hyderabad in order to reach Sippy (Brahmanandam), the driver who helped Venky kidnap Babji’s sister. Babji, unaware of the fact that he is travelling in Sippy’s taxi, goes around Hyderabad with Boiling star Bablu (Prudhviraj), A rising Television star. Meanwhile, Kesava Reddy (Mukesh Rishi), a politician is behind Chandrakala’s life. He conducts an attack on her through which Venky comes to know that Chandrakala is actually Babji’s second sister and that he had send her with Sathya to Hyderabad to maintain a low profile. Babji readies Chandrakala to marry Bharath. He also continues to search for whoever (Venky) abducted his sister. Using the help of Nano Shastri (Krishna Bhagavaan), Venky manages to get Babji and Chandrakala into his house. He also comes to know that the reason Kesava Reddy wants to kill Chandrakala is because his younger sister committed suicide because she loved Babji although he did not reciprocate the same. He hires Hamsa Sippy (Hamsa Nandini), Sippy’s wife, to act as his father, Meka Papa Rao a.k.a Puppy’s wife. He tells Babji’s elder sister to come back on the engagement day to act as if not married and Babji fixes the marriage of his elder sister with Bharat. But unexpectedly, They all come to know that the girl is pregnant and so Bharat refuses to marry. Then Venky tells Babji that his brother (who is actually Babji’s sister’s husband and is acting as Venky’s brother) will marry his sister. Babji agrees for the wedding and in turn tells Chandrakala that she is to marry Bharat again. Through an attack incident, Venky comes to know that Bharat is Kesava Reddy’s son. He tells Kesava Reddy that even Babji is aware of this fact and is planning to kill Bharat on a trip to Srisailam. Kesava Reddy ends up believing him and attacks Babji and the group on the way. He foolishly reveals to Babji that Bharat is his son and that he is aware Babji will kill him. When Kesava Reddy realizes his folly, he kidnaps Chandrakala and Bharat and escapes from the spot. Boiling star Bablu who mistakes it to be a serial shoot, stops Kesava Reddy on the way which gives Venky enough time to reach Kesava Reddy. In a thrilling climax, Venky gets Babji to beat up Kesava Reddy and using his “Sympathy angle” trick, which he had earlier used to get Babji and his sister together, He gets Babji to agree for his and Chandrakala’s wedding as well. The film ends with Sippy saying that with “Loukyam”(Tact), you can fool not only Babji, but even God and Boiling star Bablu saying he is Cool Bablu from now on and he will do only comedy serials and not action ones.
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