Ghulam E Mustafa is a story of a gangster named Mustafa (Nana Patekar) who carried out nefarious activities for Shanta Prasad (Paresh Rawal). Mustafa falls in love with Kavita (Raveena Tandon) who is a classical dancer but has to work at night clubs for money. After her mother’s death Kavita starts to live with Mustafa and decides to get married to him but, in an accident she looses her life. After Kavita’s death Mustafa decides to change himself and to help other people. His first chance comes in the form of Mr Dixit (Shivaji Satam), an honest person working at a government office at a high post. He loses his job because Bipin Verma (Monish Behl) catches him taking money. Mr Dixit says that its a false accusation. What happened actually uis that when Verma came to Mr Dixit's house, he liked his daughter Vidya (Radhika) and wanted her. Dixit's refusal to allow that led to Verma's manipulative accusations. On hearing all this, Mustafa moves to Mr Dixit’s house. Mrs Dixit (Aruna Irani) doesn't lik a Muslim man to living with them. Will mustafa be able to protect Vidya from Bipin Verma and help Mr Dixit get his job back despite Mrs DIxit's rude treatment?