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.

Esthappan is a fisherman, who lives in a seashore colony. His story unfolds through narrations by other fishermen about his miraculous acts. Through the contradictory statements of these people, a mystical figure of Esthappan unfolds.