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The film revolves around a middle class Malayalee family. Problems arise when the eldest son alienates his father and gets thrown out of home. The film portrays the other members struggling between the two.

Kalikkalam unveils the story of a burglar who is known by different names in different places. He is a kind person and uses the money burgled to help poor and orphans. During one of his burglaries, he happens to witness a murder for which a police officer named Shekharan is falsely accused. He helps Shekharan to prove his innocence. For this, he had to confess his crimes and surrender in front of the law. On the parallel, a romance story between Mammootty's character and a young Christian girl, Annie, is shown. It was a Blockbuster during its time.

Balu takes revenge against people who falsely implicated him in a murder. Will he be able to bring the real criminals in front of the law?