In the history of Telugu literature, short story occupied a pride of place, as it has been very representative of the socio- political dynamics in the society. However, for a comprehensive understanding of the trends and themes, the present paper highlights the role of the Telugu short story in socio-political movements and the unique status of the genre in the literary movements. And also it brings to limelight the various factors that account for the growth, expansion of the genre of the short story in Telugu.