Dreams highlights the role played by a happy-go-lucky flamboyant Bollywood film Director in uplifting the mundane existence of a poor girl. Derided by people, including her own parents, the girl considers her birth to be curse until the Director instills her with new-found confidence, hope and self-belief.

Police Inspector Ram takes over charge of a police station in a crime-laden region of Bombay. He finds that whenever he attempts to arrest anyone, a gangster named Nagesh always intervenes and arranges their release. He confers with some havaldars about this issue, and they inform him that Nagesh has political influence and no one dares to oppose him. The only one who can dare to stand up to Nagesh is an elusive man called Vishal. On the other hand is Usha, Nagesh's sister, who has fallen in love with a middle-class fellow collegian named Raju. When Nagesh finds out he has Raju severely beaten up and left for dead, and asks his sister never to see Raju again. Raju survives and both he and his mother approach Vishal for justice. What is Vishal's background? Why does he dare to stand up against Nagesh when no one else can?