Velayudham starts with journalist Bharathi losing her colleagues and becoming the target of powerful people after her sting operation to expose a group. To end the menace, she creates an imaginary character called Velayudham claiming he would teach a lesson to evil elements. Little did she know that there is a milkman called Velayudham alias Velu, who leads a content life in a village with his sister Kaveri and cousin Vaidehi .