Dharam Dev of the Special Squad (played by Dev Anand) wants to bring swindler Durga Prasad, or DP (Kabir Bedi), to book. He befriends DP's secretary, Sapna (played by the gorgeous Parveen Babi), to obtain information. Very soon, though, DP has his revenge: he frames Dharam Dev on false charges of drunken driving and the latter is imprisoned. The police soon realize it was a mistake and Dharam's term is reduced and he is out after six months. He starts his battle from outside the police force, with Sapna and Inspector Rajesh (Rakesh Roshan) as his only friends. Soon, however, DP again outwits him and he finds himself involved in a kidnapping cum murder case. How Dharam Dev proves himself innocent and catches DP red-handed is the story of Bullet, a taut thriller from the man who did these the best, Vijay Anand.
And why is the name of the film Bullet? Since his release from prison, Dharam Dev carries a bullet in his pocket to taunt DP: he keeps reminding DP that the bullet had DP's name in it.