Sivaramakrishnan (Prabhu), who works in a tailoring factory, makes a hobby out of teaching corrupt government workers a lesson by taking them to consumer court. Though his parents wish to see him married, he is vehemently against the idea. Meanwhile, Gayatri (Vijayalakshmi) gets Sivaramakrishnan's photo by mistake, which causes her to cancel her arranged marriage with a doctor (Anandraj). After several misunderstandings, Sivaramakrishnan and Gayatri get married. But then Gayatri learns of Sivaramakrishnan's previous marriage with his aunt's daughter Sumathi (Vindhya) when she, with her son, takes up residence opposite their house. A few coincidences that require suspension of disbelief are expected in movies intended to be comedies but Yes Madam moves along relying some fantastic coincidences that are just too tough to swallow.