A young man falls in love with a young prostitute, and must overcome the social stigma, as well as face her pimps and criminal elements, to succeed in his love for her.

This is the story about the resilience shown by the Indians when they were under the British Rule. They are already taxed to the bone by the British and their cronies, but when Jack Russell announces that he will double the Lagaan (tax) from all villagers, they decide to oppose it. Leading the villagers is a handsome young man named Bhuvan, who challenges them to a game of cricket, a game that is to be played by veteran British cricket players, versus villagers, including Bhuvan himself, who have never played this game before, and do not even know a bat from a piece of wood. As the challenge is accepted, the interest grows and attracts Indians from all over the region, as well as the British from all over the country - as everyone gathers to see the 'fair play' that the British will display against their counter-parts, who are aided by none other than the sister, Elizabeth, of Captain Rusell.

Rahul Malhotra (Aamir Khan) is the manager of the heavily in debt family business. He is also the guardian of his dead sister's mischievous kids. Rahul hires Vaijayanti (Juhi Chawla) as governess. Vaijayanti is a runaway from home as she does not want to marry the man her orthodox family has chosen for her. Predictably, Rahul and Vaijayanti fall in love. Maya (Navneet Nishan), a rich girl in love with Rahul tries to ruin his family and his business, but all ends happily.