Plain-clothed police officers, on patrol in a police van in Mumbai's Khar Danda area, recount the story of five crooks: Sheshadari, Shiva, Prakash, Vikram, Shardul, and their Police Inspector friend, Kalyan. The tale revolves around a bag containing 2.5 Crore Rupees that goes missing - resulting in lies, deception, betrayal, and death.

Obsessed with day-time TV soaps, Ekta Santoshi starts suspecting her husband, Gopal, of having an affair with an unknown woman. Not satisfied with his explanations, she decides to investigate, setting off a chain of hilarious events. These involve her dumb brother/hair-stylist, Lucky; her sister-in-law, Esha, who loves ACP Madhav Singh Ghai; two individuals both named Anthony Gonsalves; amongst many others that result in a hapless Gopal's arrest for the homicide of his co-worker, Subodh Mehra.

Phoonk 1 ends with the killing of Madhu, the woman who casts a black magic spell on Rajiv's daughter Raksha. Phoonk 2 begins with Madhu's ghost returning from the grave to seek revenge on the family. On bagging a new construction project, Rajiv moves with his family to a new place. Raksha and Rohan begin exploring the new place and the surroundings- the lonely beach and then the woods behind the house. The terror begins with Raksha and Rohan finding a doll in the woods and then it progresses to a series of highly traumatising experiences for the whole family. Manja, the only man whom Rajiv could turn to, meets a gruesome death at the hands of the black magic woman Madhu's ghost, who has risen from the grave to avenge her own death... to seek vengeance on Rajiv, by torturing his loved ones- his wife Arati and their children, Raksha and Rohan in unimaginably cruel ways. Phoonk 2 captures the fear of a family caught hostage to a murderous...