Babu, an orphan brought up by his uncle and aunt, believes that they swindled his property. Once when his uncle chides him, he leaves home for Hyderabad to stay with his friends, whom he trusts. Kindhearted as he is, Babu believes that life is to be happy and make others happy. Babu meets Baby accidentally, and they become good friends. Whenever she is lonely, Babu and his three friends cheer her up. Once during her birthday, some goons tease Baby, and Babu thrashes them. Later, they settle scores with Babu, but his friend, the assistant director, suffers grievous injuries. Upon the doctor's demand for Rs. 5 lakh for surgery, Babu borrows from a moneylender named Laddu, on the condition that he would pay the money back in a week. However, they cannot pay the money and plead for two more days' time. In a bid to avoid risking their lives in the hands of the goon, Babu and his engineer friend go to rob a bank but get trapped in a robbery case which they had not done. They suspect Kiran, the security guard, as the culprit. Babu and his friend both get jailed. However, Babu befriends the jailer and a notorious criminal named Nannanna. At this juncture, Sonu Seth enters and ensures their release. They come to know that another criminal named Nayeem was behind the robbery, and suspecting links between the criminal in the jail and Nayeem, Babu beseeches his help, and he obliges. Babu, his friend, and Nayeem surrender themselves and the money in the court. The film ends on a happy note with the union of all the friends.
The music of Yuvatha was released on 21 August 2008 amidst an impressive gathering amidst charged atmosphere at Jouk Pub, Banjara Hills, Hyderabad. Aditya Music is marketing the audio, with six songs. Top producer and distributor Dil Raju released the audio CD and presented the first number to Hari, one of the producers. Bommarillu Bhaskar unveiled the audio cassette and gave it to director Parasuram. The event was graced by hero Nikhil, debut heroine Aksha, Monali, fight masters Ram Lakshman, lyricist Krishna Chaitanya, actor Srinivasa Reddy, cinematographer Jaswant and others. The music and backgroundscore was composed by Mani Sharma and all the lyrics were penned by Krishna Chaitanya.