Prem (Salman Khan) is married to the loving yet traditional Pooja (Karishma Kapoor), and together they have two children Pinky (Baby Karishma) and Rinku (Master Shahrukh). Pooja is a dedicated wife, but as a result she is engrossed in house duties and has less time for her husband Prem. Prem tries to spend time with Pooja by taking her out for movies or for a dinner, but Pooja says that things were different before marriage and now both of them have responsibilities. One day, Rupali Walia (Sushmita Sen) arrives at Prem's office to give an interview for the role of a model assignment. Rupali worked with her photographer Deepak, who was in love with her, but Rupali tells him that she only considers him to be a good friend. Rupali tells Deepak that she hopes to marry a millionaire with a huge mansion, cars and servants. Prem signs Rupali exclusively for his agency for 3 years. As Prem cannot spend time with Pooja, he keeps running into Rupali everywhere and they end up spending time with each other. Prem and Rupali are attracted to each other and ultimately, they fall in love. Rupali doesn't know that Prem is lying to her and that he has a family. Rupali is much preferable to Prem due to her modern lifestyle and fashionable choices, as compared to Pooja. Prem takes Rupali to Switzerland for a photo shoot, but his mom Sushila (Himani Shivpuri) forces him to take Pooja as well. Prem convinces Pooja not to come due to the expenses involved which he estimates to be Rs 15 Lakhs. In Switzerland Prem meets Lakhan (Anil Kapoor) and Lovely (Tabu). Lakhan is family friends with Prem's mother and knows that if he sees Rupali, he will report it straight to his mother. As luck would have it Lovely befriends Rupali, but Rupali doesn't say that she is dating Prem. From Lovely, Rupali hears about Pooja Bhabhi. Prem explains that he has a dead brother who passed away in a car accident, and a widow Bhabhi and her 2 kids, whom Lovely and Lakhan keep referring in their discussions. Prem says that his mother is very orthodox, and this is why she never allowed his Bhabhi to get married again. As luck would have it, Prem and Lakhan are staying at the same hotel. Lakhan is a doctor, he finds out the truth, when Prem has a back spasm in his room with Rupali and Lakhan is called upon to treat him. When Lovely meets Rupali, she tells him that Prem is married and has 2 kids. When Rupali confronts Prem, Prem claims that he married Pooja under pressure as Pooja is a mentally sick person and effectively Prem has a non-existent marriage. This conversation is recorded on Billu's (Master Varun) camera accidentally (Billu is Lakhan and Lovely's son). Prem returns to India with Rupali and gifts her a mansion very close to his existing place where he lives with his family. Rupali is ecstatic and Prem even gifts her a car. Now Prem alternates between spending with Pooja and with Rupali. Prem tells Pooja that he is going for a long walk, and she makes him take their dog named Tiger along for company. This way, Tiger also sees Rupali's mansion. At home, Pooja watches the video with Lakhan and Lovely and sees this particular section where Prem and Rupali hug each other. Lakhan manages the situation by saying that Prem was harassed by Rupali and Prem was not at all interested in her. Pooja still confronts Prem, but Prem reminds her that it was Pooja who made him cancel her tickets. Pooja is ashamed when Prem says that she is doubting his character. Back at home, On Karva Chauth, a religious ceremony observed by married couples, Pooja discovers Prem at Rupali's house. Prem had gifted Rupali a house very close to his own and Rupali had insisted that Prem spends Karva Chauth with her. Pooja's dog, who had been to Rupali's earlier drags Pooja to her home and the truth is revealed to Pooja. She asks Prem to choose between his mistress and his family. Prem chooses Rupali and moves in with her, leaving his children and mother behind with Pooja. Pooja sends her mother-in-law and children to live with her husband and Rupali. They intentionally trouble Rupali and convince Prem that Rupali keeps them hungry and wants to poison and kill them. When Rupali tries to discipline the kids, it forces Prem to stop her and see her in a negative light. The trio also pretend that Rupali is making them do housework like slaves. Then they pretend as if Rupali has thrown them out of the house. Prem forces Rupali to apologize to his mom and kids. Prem then hits Rupali when his mom tells him that Rupali gave her poison pills for a headache. Prem is not willing to listen to Rupali's side of the story. Pooja, meanwhile, with the help of Prem's friend Lakhan, has a make-over, becoming a modern woman and taking on modeling assignments. She is the 51% stakeholder of Prem's modeling agency. Pooja takes operational control of the agency and cuts off Prem's source of funds that he uses to splurge on Rupali. Pooja also fires Rupali from the agency. Ultimately the relationship between Prem and Rupali breaks down. In the end, Prem realizes that Rupali only came to him since he gave her material things, while his wife stuck with him through thick and thin. Rupali realizes her mistake and gets back together with her ex-boyfriend, Deepak (Saif Ali Khan). This was designed by Pooja and Lakhan who contact Deepak and make him contact Rupali. In a twist, Lakhan befriends Rupali, affectionately calling her his sister. While hugging her, his wife Lovely (Tabu) walks upon them and misunderstands the situation. She leaves the house crying, and drives away in a car, which their son has tampered with and has managed to disable the brakes. Lakhan then chases after her and makes up with her, with Lakhan saying to Lovely that she is his "Biwi no. 1."
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