'Okkadu Migiladu' is the story of displaced Sri Lankan Tamilians who find themselves stuck with the tag of 'refugees' all their lives. The mistreatment they face both in India and Sri Lanka, with either country refusing to accept them as their own, forms the crux of the story.

Ajay, a fiery Kabaddi player from Hyderabad, visits Kurnool for a tournament and rescues Swapna from a faction leader Obul Reddy, who wants to force her into marriage. He secretly hides her in his home and assists her in planning her escape abroad for her higher studies. But, fate has other plans.

Dr. Pavitra (Madhurima) is a psychiatrist who works in a mental hospital. Sri Krishna (Suresh Gopi) is a successful criminal lawyer. Bujji (Ajay) works under Sri Krishna. Sri Krishna and Pavitra are disciples of a godman. Pavitra has a family dispute with her brother-in-law and he dies under suspicious circumstances. Slowly a few people associated with Pavitra are killed and the needle of suspicion turns towards Pavitra. The rest of the film is all about who did it.