Khaidi No.786 is action drama based movie in which, Gopi (Chiranjeevi) is a music master brought up by Satyanarayana and Nutan prasad in a village. He wants to become a police constable. Surya Chandra Rao (Kota Srinivasa Rao) is a rich man in the village with his daughter Radha (Bhanupriya) who is head strong and proud of her riches. In a brawl with Gopi, she seeks revenge and acts as his disciple wanting to learn music and later accuses him of attempting to rape her with the help of new SI of the village.Asirayya (Mohan Babu) but later realises her mistake and his good nature and falls in love with him. Though reluctant to marry her, Gopi is convinced to accept her into his life and they marry. Surya Chandra Rao is enraged by this and sends a goon to kill him and in a fight the goon loses and Gopi leaves him at Surya Chandra Rao