Movie is about a family and encounter of Ghost with one member of that family ie. Banku (Aman Siddiqui), the child of two ie. Juhi Chawla and Shahrukh Khan. The family took a mansion on rent in Goa which is said to be haunted. As the family moves in, the father moves away for work. and now its only mother (Juhi) and Banku (Aman) in the house.

However, the Boothnath (Amitabh Bachachan) tries every trick to scare the child but he did not get affected. He, when asks his mother about existence of Bhoot (Ghost) then she just denies and this makes child impossible to beleive that he is actually a Ghost. ie. Bhootnath. Bhootnath falls in love with Banku and two are soon inseparateable.