Chidambaram is based on a short story by noted Malayalam writer C. V. Shriraman. The film is a deeply symbolic exploration of the man-woman attraction leading to betrayal and eventually to the purgatory of guilt.

Mathews, a ruthless rubber baron, is involved in various criminal activities. Baby, Mathews' son, begins to turn violent due to the environment he has grown up in, causing Mathews to repent his deeds.

Saleena is happily married to Mathew , a wealthy estate owner. Inexplicably she commits suicide much to the shock of Mathew. He firmly believes that there existed no reason for her to do the act and asks his journalist friend Balu to investigate why. Balu, who was also close to Saleena, tries to piece together clue from her past to figure out the answer.

In the 1950s a village in Kerala is preparing itself to be included in the nation's electric grid. Things are looking up for villagers and everyone is optimistic about the progress that electrification will bring. However soon some trouble brews starting with petty quarrels on trees being felled for the power lines. A series of unfortunate events follow the electrification as the village comes into terms with rapid modernization.

A young man narrates two conflicting accounts of his life, changing the details and incidents in both, as he slowly approaches madness.