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The movie talks about the problems faced by an ordinary Malayali employee in his company and also in the gulf region. P. Madhavan Nair (Mohanlal) works for a company in Abu Dhabi which is owned by an Arab (Shakti Kapoor). The real problem starts when Ottakathalayan (Mukesh) meets Madhavan Nair. Madhavan Nair also has a lover, and her name is Meenakshi (Lakshmi Rai).
The movie name can also be read as Arabiyum Ottakavum P. Madhavan Nayarum (English: The Arab, The Camel, and P. Madhavan Nair) which also has an alternate title of Oru Marubhoomikkadha (English: A Desert Tale).