In Guru, Raghuraman (played by Mohan Lal) is plunged into a world of fntasy. It is peopled by the blind and he rescues them from their ignorance.

The central character is Raghuraman, a jobless rebel. His life takes a sharp turn when he loses all his dear ones including his fiancee in a communal riot. To settle scores with his rivals, he joins an extreme religious group. An accident brings him to a spiritual master's abode. Raghuraman's colleagues who move about in disguise hatch a heinous plan to carry out a series of bombings to destroy a Muslim refugee camp. A girl gets a revelation about the plot and stops Raghuraman before he could get cracking.

He is made to kiss the footwear of the guru after which he is plunged into a world of fantasy. It is peopled by the blind and it falls on Raghuraman to rescue them from their ignorance and blindness. He also joins a pair of lovers. Mission accomplished, he wakes up as a new man. Reaching the site of a carnage, which occurred as a result of his former associates' bombing, he lifts up an orphan, providing the ray of hope for his community.Mohan Lal as Raghuraman lives up to his reputation as a versatile artiste and Madhupal acquits himself well as the blind lover.

Guru was a big budget movie incorporating several novelties. The film sets, the costumes etc. reflected the ingenuity of Rajiv's artistic instincts. Extensive use of computer graphics and the incorporation of a Hungarian orchestra were highlights of the movie. The undenied involvement of Sri. Karunakara Guru as the inspiration behind the movie provided much impetus on the publicity plane. Though financial participation of the ashram remained a matter of controversy. Despite the presence of mega stars, Mohanlal and Suresh Gopi, the movie proved to be a financial disaster. However it was nominated for the Oscar awards as a part of the Indian panorama.