Tenali Rama informs Krishnadevaraya that Rameshwar Rao never intended to divide his wealth between his sons. While the dispute is finally settled, back home, a new one crops up. Amma believes that Shardha is pregnant, after overhearing Shardha's conversation with her friend. When Amma informs Tenali Rama that his wife is expecting, Tenali Rama's joy knows no bounds.