Swami and Friends revolves around the everyday life of ten-year old Swaminathan, or Swami as he is known by other characters. Swami portrays the growing up pangs of a boy who despises school, as he makes excuses and roams around Malgudi with his friends. Swami's father works in a government office and his mother is a housewife. At home, Swami shares his adventures with his aged granny, who lovingly addresses him as "Chamy." Swami also has two close friends: Mani and the son of the Police Chief Superintendent, Rajam. Swami's character was portrayed by Manjunath, a regular actor in many of Shankar Nag's productions.

The Vendor Of Sweets narrates the story of a sweet vendor, Jagan, his business and confrontation with his son who had returned from abroad. The title role was played by Kannada actor and director Anant Nag, and most of the actors cast in this serial were from Kannada film Industry. It was directed by Anand Lal Das.[citation needed]

Episode 1 titled Swami - Swami is a young child living in Malgudi with his parents and grandmother. Once while reading the newspaper, his father reads an article about the bravery shown by an 8-year old boy and feels that Swami should do something similar. Swami has the habit of sleeping with his grandmother after listening to a story told by her. This irritates Swami's father. Swami's father then challenges, or rather forces, him to sleep in his office. When Swami tells his friends of the ordeal, his friends warn him about a ghost living near the office. When Swami sleeps in his father's office he has nightmares about the ghost and wakes up with a start. At the same time, Swami spots an intruder breaking into the office. Mistaking him for the ghost, Swami grabs the intruder's leg and yells for help. The rest of the villagers rush inside the office and catch the intruder. The police tell Swami that the intruder was a thief wanted by the police and congratulate him. The incident is published in the Malgudi Times but little Swami is so scared after the incident that he starts sleeping with his grandmother again.

Episode 2 titled A Horse and Two Goats - Muni is a very poor man living in Malgudi with his wife. Every day, he takes his two goats to graze near an old statue of a horse outside. One day Muni's wife requests him to buy some food but Muni doesn't have any money. He goes to the grocer only to get kicked out because he had not settled previous debts. The same night, his wife tells him about a body found near the well and is afraid to go out for fear of the police. The next day, when Muni takes his goats out to graze, he spots a motor car. Out of the car comes a white man from New York who starts talking with Muni but he does not understand a word of it. He thinks that he is a policeman who has come for the body and starts telling his suspicions about other people. The conversation carries on with both persons not understanding each other. The tourist then examines the statue of the horse and makes an offer to buy it. Muni misunderstands it as an offer for his goats and is reluctant but when the American offers a hundred rupees, Muni relents. When he gets home he surprises his wife with the money and tells her that he sold off the goats. When they hear the bleating of their goats outside they find the goats in their yard with the statue gone.

Episode 3 - Thanappa is the village mailman who knows everyone and knows everyone's business by virtue of reading out to the recipients the mail he delivers. Over the years he becomes good friends with Ramanujam and his family. He watches Ramanujam's daughter Kamashi grow up and meets Ramanujam's brother. When Kamakshi comes of age, Thanappa helps the family find a suitable match by telling them about a failed matchmaking attempt involving another family in Malgudi. The young suitor and Kamakshi are compatible and the wedding is arranged for the 20th, the last day before the young man leaves for two years of training. If the wedding isn't held by that date, it won't take place at all. Two days before the wedding, Thanappa is given an urgent letter to deliver to Ramanujam informing him of his brother's serious illness. Thanappa goes to the house, but amidst the gaiety of the wedding preparation, decides not to deliver the letter. The next day a telegram arrives informing Ramanujam of his brother's death. Thanappa again delays delivering the message. The wedding proceeds. Two days later Thanappa delivers the bad news to Ramanujam, with his sincere apologies.

Episode 4 - Charu is the village miser who cares more about money than his own family. He never spends a rupee when he doesn't have to. One day in an indulgent mood he decides to take his grandson to see a movie. He won't spend money on sweets, telling the boy they are not good for him. While Gopinath finds the movie entertaining, the boy is bored and finally sneaks out of the theater and sets off to meet his friends to play cricket. Gopinath eventually realizes the boy is missing and goes in search of him. Suddenly his money is of no benefit, as he searches fruitlessly for the boy. He buys a packet of sweets for the boy, and even pays homage to the gods, promising to offer a whole coconut if the boy is found. When darkness falls, he makes his way back to his daughter's house, and struggles to find the words to explain the situation to her. Just as he is about to admit his mistake, his grandson comes bouncing into the house joyous at having won his gulli danda match.

Episode 5 titled The Jug Spirit - Seth is a merchant and a grocer who also owns a boarding house filled with tenants who constantly complain about his tight-fisted ways. One of his tenants, an exorcist makes a living by removing evil spells and spirits from afflicted individuals. Merchandise is disappearing from Seth's shop, and while Seth suspects a thief, the trap he sets up reveals that the shop is overrun with rats. The exorcist suggests that Seth get a cat to stop the thievery. One night Seth is aroused from his sleep by a tremendous racket caused by a brass jug flying around the shop. Seth pleads with the exorcist for help. When the exorcist diagnoses a jug spirit as the source for the problems and enters the darkened shop to rid it of the demon, he is struck by the jug, which lands on the floor and releases a cat that was caught inside. As the cat and the exorcist emerge from the shop, Seth ridicules the exorcist that only a cat was in the jug. The exorcist acknowledges that a cat was in the jug, but then asks, "But what was in the cat?"

Episode 6 - Leela is a little girl. Leela's mother Kamala works hard around the home. When she complains to her husband to find domestic help, Sidda overhears it and offers to work as their servant. Leela instantly takes a liking for Sidda and begs her parents to hire him. He works hard and becomes a favorite of Leela. One day Kamala sends Sidda to the market, and Leela begs to go along. When they return, Kamala notices that Leela's necklace is missing. She questions Sidda, who does not answer her accusations but instead leaves the home. Kamala tells her husband, who reports the incident to the police. The police locate Sidda and take him to Leela's house, where Kamala and her husband again confront him. Sidda maintains his innocence, but is taken away by the police for questioning. Later, Kamala finds the necklace in a jar in the kitchen. Leela's father decides that Leela must not be given any more jewelry to wear, and decides to let the police know about the discovery the next day. Meanwhile, the police continue to beat up Sidda to extract a confession.