Charan Raj (Shakti Kapoor) alias Channi, is a master of crime, theft, kidnapping and black magic. He has a desire to rule over the entire world and for this desire he is ready to do the meanest of deeds - even that of murdering children. Charan Raj lays his hands upon an innocent boy - Raju (Master Amar) Raju is the only support for his sister Karisma (Karisma Kapoor) who herself dances on stage to be able to rear her brother and has all her hopes pinned on her brother. Channo who was by now assumed the guise of a doll - A doll that can walk, talk and even kill - is the Papi Gudia. This doll gets stuck to Raju like a leech. Raju, in spite of being innocent gets linked to every murder and then he comes under the eye of police.
A Makichumi, Inspector Vijay Saxena (Avinash Wadhavan) holds Raju responsible for each murder. Karisma, who till now had been enjoying a comfortable life with her younger brother, is caught in a dilemma between murder and law. On one side is his younger brother and on the other side is her love Vijay Saxena.