Om Prakash Makhija (Shahrukh Khan) is a junior artiste in the 1970s Bollywood film industry. He and his friend Pappu (Shreyas Talpade) are trying to succeed as leading actors. Om's mother, Bela Makhija (Kirron Kher), herself a junior artiste, inspires and encourages her son to succeed. He is in love with film actress Shanti Priya (Deepika Padukone).
One evening, Om views the premiere of Shanti's film Dreamy Girl, claiming he is actor Manoj Kumar. Here, scenes from older Bollywood films are used to form the scenes seen by Om on screen. He is shown fantasizing himself as its lead and catching Shanti's eye before Dreamy Girl begins and during its display. Later that night, Om becomes drunk and describes his vision of himself as a famous, wealthy film star to Pappu and some local children. During his speech, references are made to the Law of Attraction, creating an axiom that recurs throughout the story.
While shooting of a film wherein Om is acting as a scene-extra, he notices Shanti trapped in the middle of a fire scene where the fire has escaped control. When the lead actor of the film fails to save her, Om saves her and they become friends. He initially attempts to overawe her by pretending to be the lead and producer of his own films, but ultimately confesses and finds the attempt unnecessary. That night, Om invites Shanti to a film set, where Om, assisted by Pappu, uses props and several backgrounds to create fantastic backgrounds against which develops a romantic song sequence.