After the passing of his Pondicherry-born mentor, Susanna, Mumbai-based Dr. Arun Kumar Singh narrates his story to his wife, Nalini. With photographs from an old album that he has never shared with anyone, he informs her as to how Susanna caught him stealing; got him to quit his job & enrolled in a Panchgani school, as well as arranged for further education in St. Petersburg. While Susanna herself searched for true love and her marriages with six deceased men - including the abusive Major Edwin Rodrigies; drug-addicted and womanizer guitarist-singer Jamshed Singh Rathore; impotent and abusive Mohammad Wasiullah Khan; bigamist/spy Nicolai Vronski; Inspector Keemat Lal; and Dr. Modhusodon Tarafdar - men who influenced her life, broke her heart - and met with sudden and mysterious deaths.

As a child, Princess Dala is given, by her father, the largest diamond in the world, in which if you stare into it can be seen a "Pink Panther" hence the name. However, now as a young woman, rebels in her home country have seized power and are demanding the return of the jewel. Dala relaxes on holiday in an exclusive skiing resort but noted British playboy, Sir Charles Lytton is in town. He is secretly "The Phantom" - infamous jewel thief who has eyes on the Pink Panther. Charles's playboy nephew George follows to the resort in an attempt to steal it and blame it on "The Phantom", not knowing that it's his uncle. On the Phantom's trail is Inspector Jacques Clouseau, from France, and his wife who, unknowingly to Jacques, is the lover of Charles and helper in the Phantom's crime. Jacques tries to stop the attempts but he is so clueless that when several attempts are made at a fantasy-dress party...