The immediate trigger for the riots was a dispute between the Telugu Desam Party (TDP) and the Congress (I) party, which were then the two dominant political parties in Andhra Pradesh. The TDP, led by N.T. Rama Rao, had been gaining popularity, and the Congress party, led by Chief Minister P.V. Narasimha Rao, was concerned about losing power.

The city of Vijayawada, often referred to as the "Place of Victory" (Vijayavatika), stands as a major commercial and political hub in Andhra Pradesh. However, in December 1988, this moniker took on a grim irony as the city became the epicenter of one of the most devastating communal riots in the state's history. The 1988 Vijayawada riots were not merely a spontaneous outbreak of violence but the culmination of deep-seated socio-political rivalries, criminal factions, and communal tensions that had been simmering for months.

In the early hours of , Vangaveeti Mohana Ranga was on an indefinite hunger strike in Vijayawada. He was demanding land reforms for the poor and increased personal security, citing threats from his political rivals.

Entire markets were gutted. The famous vegetable market and several cloth merchant shops suffered massive losses. The communal divide hardened; people who had lived as neighbors for decades turned against one another.

Prior to 1988, Vijayawada had a history of communal tensions, notably in 1978 and 1984, but none reached the scale of the 1988 riots. The city had a substantial Muslim population (roughly 20–25% at the time), concentrated in densely packed old-city areas like , Kothapet , and Patamata . Simultaneously, Hindu nationalist organizations were gaining visibility in the state.

On December 19, army columns staged a flag march through the streets of Vijayawada. The sight of military jeeps and soldiers with rifles patrolling the residential areas had an immediate psychological impact. The army took control of sensitive zones like One Town, Gandhi Nagar, and the Krishna Lanka areas. A strict curfew was enforced with shoot-at-sight orders for violators.