Mili (Urmila) is a middle class young girl and wishes to be an actress. Munna (Aamir Khan) is an orphan who has a close relationship with Mili and her family. Munna is in love with Mili but couldn't express his love to her. Rajkamal (Jackie Schroff) notices Mili, as she was rehearsing on a beach. He falls in love with her and forces his director to sign her for his next movie "Rangeela". Mili is very excited about this development. The story takes a dramatic turn when Muna sees Mili with Rajkamal and feels that Mili is in love with him.
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