 Mili Joshi (Urmilla Matondkar) comes from a poor family, but has dreams of making it big on the silver screen. Encouraged by her childhood buddy, Munna (Aamir Khan), she works on this big dream, and gets a break when movie star Kamal (Jackie Shroff) watches her perform. He decides to be her mentor, and recommends her to Movie Director, Steven Kapoor (Gulshan Grover) for the lead role in the movie titled "Rangeela". In the process, Kamal and Mili get really close, and Kamal plans to ask her to marry him. Munna is left in the cold, away from the colorful and glamorous world of movies and actors, and how can he possibly compete with an established movie star as Kamal.