DD (Ajit Vachani), a senior officer in the Archaeological Survey of India, and JB (Saeed Jaffrey), a businessman now living in the USA, have been inseparable friends since childhood. When JB returns to India after a long stay in the USA, he asks after DD's daughter Sonia (Sheeba) as a potential life partner for his son Vicky (Salman Khan). But when Vicky arrives in India, he informs Sonia that he is not interested in marriage. Sonia understands and accepts this, but suggests they marry anyway (in accordance to their parents' wishes, as respectful children do) and the she will not stand in the way of his adventures. Vicky agrees and they get engaged.
Around this time DD receives word that the lead archaeologist, Kishore, on his current project (an excavation in a small hamlet called Sangramgadh) has mysteriously disappeared. He asks his project officer Mahesh (Puneet Issar) to investigate. Mahesh reviews Kishore's notes and learns of a local baba (wise old man in the village) who seems to know a bit about the situation. They arrange to bring baba to the city.
baba narrates the history of Sangramgadh. Once a happy realm, it has now fallen upon hard times accompanied by sinister events. Although the village lands support agriculture, the harvested grain inexplicably self-incinerates overnight. Those who leave Sangramgadh assuredly meet financial or personal ruin outside, and those who stay are plagued by the suffering of a bleak and hopeless existence. The baba reveals this is all a result of a curse placed upon the village by the wandering atma (soul) of an ancient princess Suryalekha (Amrita Singh). The baba once visited the ruins of the old palace and summoned the atma whereupon it appeared and commanded him: if the village must be freed from her thrall, they must bring her her Suryavanshi (a prince born of the Sun dynasty). Shortly after this narration, the baba is found murdered in his quarters.
DD, JB, Vicky, Sonia, Mahesh and a field team arrive in Sangramgadh. They are stumped when they discover that the palace ruins (above ground) are on a bed of solid rock, impervious to digging. The next morning, however, they find a tunnel has been blasted through the rock (apparently at night) to allow them access into the palace. They find Kishore's body, hanging grotesquely by the neck, in the palace. They also find an ancient manuscript in Sanskrit.
This manuscript, written by the ancient Rajguru (royal preceptor) of Sangramgadh, chronicles the events surrounding Suryalekha's death. Suryalekha was an only child. She hated men and refused to be married. When her mother arranged for various princes to visit her, she subjected them to her tests of bravery i.e. single combat with a bunch of her trained villains (gladiators, man-eating leopards and a terrible cannibal, bred to destroy human beings). One such prospective suitor, Prince Amar Singh, bravely defeated her gladiators, but was crushed and devoured by the cannibal. Eventually, a warrior Suryavanshi Rajkumar Vikram Singh (Prince Vikram Singh of the Sun Dynasty; this character is loosely modeled on the Norse hero Thor) took up her challenge and valiantly destroyed all her minions.
Suryalekha agreed to accept Vikram Singh, but he reveals () that he only sought vengeance for his friend Amar Singh and was not interested in marrying her. As he prepared to leave the palace, the Rajguru stopped him (citing insult upon the royal family). As they dueled, Suryalekha leapt from the palace tower to her death. Seizing the momentary distraction, the Rajguru (who otherwise was no match for Vikram Singh) attacked from behind and killed the prince. And unable to bear the disgrace of this dishonorable act (albeit in defending the honor of the royal princess), the Rajguru resigned himself to the andha kuan (dark palace dungeon) for the rest of his life. The Rajmata (queen mother), pronounced a curse upon Suryalekha's atma: it will forever remain confined to the palace and never attain peace. The palace and kingdom of Sangramgadh sank into the ground under a bed of rock. And Suryalekha's atma took to terrorizing the village.
The manuscript stops abruptly. The final page (bearing the revelation of how the atma may be freed of the curse) is missing. At this point, Vicky realizes that he is the Suryavanshi prince reborn.
That night, Sonia and Vicky enter the palace ruins. Suryalekha issues forth from the mirror and welcomes her Prince with flowers. She is enraged at the sight of Sonia. She sends flaming missiles at Vicky. Vicky eventually channels the spirit of Suryavanshi and prepares to battle Suryalekha once again. Sonia, in the meantime, finds the outer garden where there is a large painting of the Rajmata and the final page of the Rajguru's manuscript with the incantation to defeat Suryalekha. Vicky briefly changes form (similar to the transformation of He-Man) and, with the help of the incantation, channels the Rajmata herself to complete the spell and quiesce Suryalekha.
Suryalekha finally accepts her destiny, asks for forgiveness, and passes on to the other side. Vicky and Sonia wearily climb out of the palace and watch the sunrise. Vicky now professes his love and pledges his loyalty to his wife Sonia.
The film ends with the couple running into the arms of their waiting parents.