Shivudu, found as a baby, is raised by villagers near a waterfall. As he grows, he becomes curious about the world beyond the waterfall.

One day, Shivudu climbs the waterfall and discovers a beautiful woman, Avanthika, who is part of a rebel group.

Avanthika's group is trying to rescue their queen, Devasena, imprisoned by the tyrannical king, Bhallaladeva. Shivudu falls in love with Avanthika and pledges to complete her mission.

Shivudu infiltrates the kingdom of Mahishmati and rescues Devasena. He's revealed to be Mahendra Baahubali, the son of the late king Amarendra Baahubali.

In a flashback, it's revealed that Amarendra Baahubali and Bhallaladeva were cousins. Both were trained to become the next king of Mahishmati.

Sivagami, the queen mother, announces a contest for the throne. Despite Amarendra's win, Bhallaladeva's father manipulates Sivagami into declaring Bhallaladeva as king.

In the present, Mahendra returns to Mahishmati with Devasena. He learns the truth about his father’s death from Kattappa, the loyal commander.

Mahendra challenges Bhallaladeva for the throne. A massive battle ensues between the two parties.

With the support of the people and the rebel army, Mahendra fights bravely against Bhallaladeva's forces.

Eventually, Mahendra defeats Bhallaladeva, ending his tyrannical rule over Mahishmati.

Bhallaladeva is killed, and Mahendra Baahubali is crowned as the rightful king of Mahishmati.

With Mahendra as king, peace and prosperity are restored to the kingdom, ending the legend of Mahishmati on a hopeful note.