Balachandran had resorted to his work after he is unable to cope up with the death of his wife, Bhama. During the process, he neglects his only son, Appu. When Appu returns home for his school vacation, Balachandran promises to take him on a lot of trips, but is unable to do any as he is caught up with work. Pappayude Swantham Appoos movie is all about the bonds between the father and his son.

A young couple, Ganga and Nakulan, arrives at the ancestral home called Madampalli of the latter. Hailing from a family that follows tradition and superstitions, Nakulan's uncle Thampi objects to the couple's idea of moving into the allegedly haunted mansion, which Nakulan ignores. The couple moves in anyway following which seemingly supernatural events begin to happen.