Enredo

Two boys and a girl befriend Kuttichathan by accident and release him from the grip of the magician. On the way Kuttichathan meets Ashish, a member of the police, who is after Karimbhootham. They understand that this Chathan is friendly to kids and is a very good friend. Therefore, the girl promises to keep Kuttichathan in a house for two reasons: one, her father drinks too much, so she wants Chathan, who is a very good magician, to make him himself, as her mother has died, there is no one to control him; second, Chathan, being a small boy, also drinks a lot. He could drink all that her father drinks, thereby changing her father's attitude. At the same time, the cruel magician wants the Kuttichathan to lay hands on a treasure.—Aravind NC

2 men Raja (Ravi Baswani) and Mr. Anthony Gonsalves (Harish Kumar) uses many means to find a treasure inside Mantravadhi's house First they use Baba Khondol (Shakti Kapoor) and later more scientific methods with Professor Chashmish (Satish Kaushik).. They try when Mathravadhi is out of the house, but fail every time.

The children have heard local folk stories of Chetan that Chetan is friendly to kids and is a very good friend to enjoy with. But Chetan is also known to drink a lot. They want to find Chetan and befriend it. Laxmi's father (Dalip Tahil) is a drunk, but loves Laxmi no end. He is an artist by profession. He draws his imagination of what Chetan should look like.

Two boys Vijay (Suresh), VInod (Arvind) a girl Laxmi (Sonia) befriend Chetan (M. P. Ramnath) by accident (They enter the house when Mathravadhi's out of the house & find his talisman in the grounds, and play with Chetan who comes out to meet them) and release him from the grip of the magician Manthravadhi (Kottarakkara Sridharan Nair).

Chetan can take any form, as he is a spirit, but his forms scare the kids, until he takes the form that Laxmi shows him (the drawing that her father made of Chetan). Chetan wants the kids to save the talisman, which is the key to his freedom. Laxmi asks Chetan to stay with her at her house. Mathravadhi is pissed to find that Chetan is gone. Nobody can see Chetan except the 3 kids. Laxmi takes Chetan to a bar where her father spends his time. Chetan drinks everything in the bar.

Meanwhile Raja and Anthony are looking for a magician who can defeat Mantravadhi and can get them the treasure. They find Hawa Hawai (Urmila Matondkar). Hawa Hawai decides to collaborate as she wants Chetan and the guys want the treasure. Hawa Hawai tells the guys that her father created Chetan as a pure soul in the temple many yrs ago. But Mantravadhi was her father's servant and stole Chetan for petty gains. She wants to restore Chetan to the temple. She thwarts Mantravadhi's attempt to capture Chetan at the kids school. But Mantravadhi detects Hawa Hawai's presence and turns her into a cat with his spells.

Chetan tells the kids that Mantravadhi is using Chetan's powers to release a large treasure hidden in the old house, which is protected with spells. Chetan says one day he will have to leave the kids. But Laxmi wants him to get her father to stop drinking before he leaves. Chetan obliges her by destroying the bar where Laxmi's father frequents. Father hits Laxmi in frustration, but is repentant and gives up drinking.

For Chetan's farewell party, the kids use the talisman, which turns Hawa Hawai back to human form and gives Mantravadhi his location, who quickly captures Chetan. Laxmi enters the house to look for Chetan. Vijay and Vinod follow. They find Hawa Hawai at the house entrance. She uses the talisman to break the defenses erected by Mantravadhi. Chetan is free and kills Mantravadhi. he turns into a bat and flies away.