Brijnath (Paresh Rawal) an ordinary kitemaker, with sheer hard work and honesty becomes a very successful industrialist. He and Rana Mahendra Pratap (Mukesh Khanna) a very rich ex-Thakur are close friends. On Rana's wish and request Birju gets his younger brother Raja engaged to Rana's only beloved sister Madhu on Raja's tenth birthday. But destiny had something else in store of them.

Overnight, Birju a very rich man becomes a pauper. Not wanting to have any relationship with a poor family, Rana breaks off the engagement of his sister Madhu (Madhuri Dixit) with Raja (Sanjay Kapoor). More bad luck befalls Birju. In saving Raja from being hit by a speeding car he meets with an accident and is seriously injured. His life is saved by the doctors in the hospital but he looses his mental balance and also becomes physically handicapped.

The small boy Raja takes up the responsibility to take care of his handicapped elder brother Birju. As time passes, Raja's love and dedication brings a great change in Birju's physical condition and he becomes quite normal. After few years young Raja and Madhu meet again and they fall in love. Rana Pratap could not tolerate this relationship. To separate the lovers he tries to force his sister Madhu to get married to a very rich prince Abhishek. Birju takes up the challenge of bringing Raja and Madhu together.

Will Rana succeed in separating Raja and Madhu? Will Birju unite the lovers? See 'RAJA'