Baputty goes to his friend Abdu's house after his death to support his family and falls for Nabeesa, Abdu's sister. However, Nabeesa's greedy mother tries to get her close to the rich Kunjali.

Kadhaveedu' is a dedication to Malayalam being accorded the Shresthabhaasha (Malayalam has been declared a Classical language in 2013) status and presents, as a single entity, three different stories penned by the doyens of Malayalam literature - Vaikkom Muhammed Basheer, M T Vasudevan Nair and Madhavikutty. The film is an anthology with adaptations of stories written by renowned Malayalam fiction writers Basheer, M. T. Vasudevan Nair and Madhavikutty (Kamala Surayya).. The stories have been tweaked to fit in a modern setting and the script has been conceived by the director himself.

Set in the backdrop of the seventeenth century, the royal family of Kottayam is ruled by Pazhassi. The British government begins to impose heavy taxes on the locals in the Thalassery region of Kerala.