Kattappa continues to narrate how he betrayed and assassinated Amarendra Bahubali. After vanquishing the Kalakeyas, Amarendra is declared as the heir apparent to the throne while Bhallaladeva is announced as the kingdom's future commander-in-chief. Queen Sivagami Devi sends Amarendra on a tour of the land under disguise with Kattappa to attain knowledge in political affairs. During the tour, Amarendra witnesses the valour of the neighbouring kingdom Kuntala's Princess Devasena when she resists a group of attackers. Falling in love with her, he approaches her after the fight, posing as a simpleton and Kattappa plays along with him as his uncle. Amarendra is accepted as guard in training under Devasena's maternal cousin Kumara Varma, a coward who pretends to be brave, at the royal palace of Kuntala.

Bhallaladeva gets word about Amarendra's acts and upon viewing Devasena's portrait, lusts for her and acquires a promise from Sivagami, who assures Bhallaladeva's marriage with Devasena oblivious to the fact that Amarendra has already fallen in love with her. Sivagami sends an emissary to Kuntala proposing marriage but the emissary portrays it in a patronizing way leaving Devasena enraged. She gives a scathing reply rejecting the proposal and upon receiving her response, Bijjaladeva tricks Sivagami into sending an order to Amarendra that Devasena be brought to Mahishmati as a captive