A nameless boy, who was abandoned at a very young age by his parents, faces taunts from the other children in his village for not having a name. He is referred to as "Footpath" and he earns a living by doing odd jobs around the slum. One day, he sadly asks a priest what his name is, to which the priest answers "Ram Jaane" (Ram knows), which the boy accepts as his name. Ram Jaane has a crush on schoolgirl Bela, but she dislikes him as Ram Jaane is a goon and a good for nothing. Ram Jaane's friend Murli also has feelings for Bela, but Ram Jaane threatens him that Bela only belongs to him. Ram Jaane and his friend Murli (Vivek Mushran) are caught stealing from a train by a corrupt police officer, Chewte (Puneet Issar). Chewte brutally beats Ram Jaane in jail, but Ram Jaane manages to escape from the remand home. Murli tells Ram that Bela has been sent to boarding school by her uncle Daddu (Deven Verma) and he plans to marry her off to a rich guy at the right age. Murli also says that the priest has enrolled him in school. Years later, Ram Jaane (Shah Rukh Khan) is working under Sameer Sanvla (Tinnu Anand). Ram Jaane started working with Sanvla to earn money, so that he could marry Bela when she returned. Sanvla's biggest rival is Mirchi (Amritpal). Ram Jaane attacks and takes out Mirchi's entire gang in a single strike. Technicolor is Sanvla's 2nd in command in the gang and is jealous of Ram Jaane's rise in the organization. Technicolor makes a deal with Mirchi to betray Sanvla for Rs 1 Crores and a cut in the business. Then, Technicolor makes a deal with Chewte to kill Mirchi and this way Technicolor will become the undisputed don of the city. Ram Jaane thwarts Technicolor's plans when he sees Mirchi coming and kills him. But Chewte reaches the location and kills Sanvla. Ram Jaane attempts to kill Chewte, but he is again put in jail and brutally assaulted. Technicolor comes to prison to meet Ram Jaane and asks Ram not to rat him out. He also promises to hand over Sanvla's territories to Ram Jaane when he is released from prison. Ram Jaane turns state witness and helps the Government nab smuggled goods worth several Crores. As a result, he is sentenced to 4 years in prison. When released from prison, Ram Jaane is taken by Murli to "Apna Ghar", a home that Murli has set up for the homeless. Murli believes that this is the best way to reform Ram Jaane, showing the difference between Murli and Ram Jaane and how they turned out. It is at Apna Ghar where Ram Jaane is reunited with his childhood friend Bela (Juhi Chawla), whom he is in love with. Bela is uncomfortable around Ram Jaane, as she only sees lust in his eyes. She avoids spending time alone with Ram Jaane and prefers Murli. Bela is in love with Murli, but Murli insists that he is not in love with her. Chewte has his eyes on Murli whom he accuses of illegally occupying government land worth several Crores in the guise of the orphanage. Ram Jaane reaches out to Technicolor and demands his cut in the business. Technicolor says that the business is now owned by Bhau and promises to revert. Ram Jaane asks for Rs 1 Crores, and Technicolor's Mercedes in the meantime. Technicolor sends his goons to kill Ram Jaane, but he sees them coming and kills them instead. Ram Jaane then collects his Rs 1 Crores from Bhau by threatening to kill Technicolor. Chewte works for Bhau. Chewte arrests Ram Jaane but has to release him when Technicolor tells Bhau that Ram Jaane has all papers related to their bank scam which can send them to jail. However, even in Apna Ghar, Ram Jaane remains a criminal and even manages to influence the children in the house to follow in his footsteps. Apna Ghar is soon targeted by Baweja (G.P. Singh), a criminal property developer with a vendetta for Ram Jaane, who encourages his gang to attack Apna Ghar and all its residents, which Ram Jaane is able to stop. Ram Jaane learns that the goons were working on the instructions of Technicolor. Baweja had paid Bhau and Technicolor Rs 10 Crores to get the land vacated. Ram Jaane warns Technicolor to stay away from Apna Ghar, but now Technicolor alleges that Ram Jaane is interfering with business, in which he is a partner with Bhau. Ram Jaane is then seen shooting Baweja in the head. Chewte learns of Baweja's death and is determined to have his murderer put in prison. He approaches Apna Ghar and starts beating one of the children, which leads to Murli and the others attacking Chewte and his fellow officers. In the riot, one child (14-year-old Poltu) gets killed. Murli blames Ram Jaane for this tragedy and Ram Jaane runs away. He attempts to make Bela run away with him (as he believes she loves him), but she refuses. Bela is, in fact, in love with Murli - Murli realized this all along and reciprocated her feelings but did not show it as he realized that Ram Jaane also loved her. Murli begs Bela to attempt to reform Ram Jaane. However, whilst trying to reform him, Bela begins to dislike him for his criminal ways. Ram Jaane sends money to Murli to support Apna Ghar, but Murli refuses to use any proceeds of crime for his charity work. Bela tells Ram Jaane that Murli has been sacrificing his own love, as he believes that he owes his life to Ram Jaane. She says Murli hoped that Bela would be able to turn Ram Jaane into a better human being. Murli goes to the media on the corruption between Chewte, Bhau, Technicolor and Ram Jaane. Bhau and Technicolor want to kill Murli, but Ram Jaane warns them to keep off. Bhau (Gulshan Grover), Ram Jaane's rival and Technicolor (Pankaj Kapur), Ram Jaane's former partner in crime hatch a plot to kill Ram Jaane. When he hears of their plan, he kills them both and then rushes to Apna Ghar to stop their henchmen from killing anyone. Eventually, Chewte arrives on the scene but is shot by Ram Jaane. Ram Jaane is taken to court where he confesses to all of his sins - the court decides that he must be sentenced to death. The boys of Apna Ghar are in awe of Ram Jaane, as he plans to "die with a smile." The boys think this is courageous and plan to follow in his criminal footsteps. Murli pleads with Ram Jaane not to die bravely, so the boys won't want to follow his path, but Ram Jaane refuses. On the day of his death, with Murli and the boys watching, Ram Jaane feigns fear, crying and pleading for his life. One by one, the boys remove their red headbands, the symbol of being members of Ram Jaane's gang. After his death, Bela and Murli read a letter from Ram Jaane to Bela, which states that he feels guilty for everything he had done and that he had planned intentionally for Bela to leave him and to go back to Murli.
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