Henna begins with a businessman Chandar (Rishi Kapoor) living in Srinagar who loves his fiance Chandini (Ashwini Bhave). Acceptance of all family members including Daddy (Kulbhushan Kharbanda) allows the couple to tie the knot, and it is when Chandar is on his way to his engagement, he meets with an accident. His jeep falls down a river and is later found in Pakistan by Khan Baba ( Saeed Jaffry) and Bibi Gul (Farida Jalal).BIbi Gul restores Chander to good health, but only to learn that he has lost all of his memory. So the Kabila community renames him Chand. Soon,Chand and Heena(Zeba Bakhtiyar) a lovely young Kabila girl, fall in love and plan to get married. Its during his new engagement ceremony that some memories of his life in Srinagar keep coming back to Chander.The Kabila members agree to send back him to his place in India,but at this stage, one corrupt pakistani law official decided to frame Chander as an Indian spy. He is prosecuted. The climax leads up to, (1) Is Chandar will come back to his place?? (2) Or Pakistani govt will do justice to Chandar??(3)What will happen to Heena?