An evil fakir possesses the king. Bound by the spell of the fakir, the king sells Tenali Raman and Rajguru as slaves. The ship on which they travel gets wrecked on an island called "Yoga Island". When the king's niece, Shobha sets out in search of them, she finds out that Tenali has mastered the art of Yogic power. Together they return to Vijayanagara and fight the evil Fakir.