Ustaad Bhagat Singh begins with a noble teacher who works for the welfare of children in the tribal areas of united Andhra Pradesh. He encounters a brave and well-read tribal boy, whom he names Bhagat Singh (Pawan Kalyan), and helps him grow into an educated youth with a strong social conscience.
Bhagat eventually becomes a police officer and fights against evil forces, while his teacher, in the meantime, becomes the Chief Minister of the state. When everything seems to be going well, a group of people attempts to assassinate the Chief Minister. How Bhagat fights these forces and whether he succeeds in delivering justice form the core of the story.
Initially, the film was expected to be a remake of the Thalapathy Vijay starrer Theri, but director Harish Shankar later confirmed that it is not a remake and that the movie tells a completely new story.