Kavundampalayam movie is a family drama. Palanichamy is respected by the people of Kavundampalayam. His only daughter Mangani falls in love with Veera, a college student and runs away with him. Unable to bear the shame of his daughter running away, Palanichamy attempts suicide but is saved by the villagers. Mangani, who trusted Veera and ran away, realizes that he belongs to a gang that extorts money in the name of love by trapping girls from big families. How Mangani is saved from the gang forms the story.