Ram (Raj Kapoor), is a businessman and the son of Dadaji (Prithviraj Kapoor). He sends his son Rajesh to London for higher studies. Rajesh is a youngster with modern ideas, who has frequent disputes with his Dadaji. Monica (Babita) also comes to India from London and is friendly with Rajesh. Dadaji comes and lives with Rajesh and Ram. However, Dadaji's rules and regulations make Rajesh irritated. The movie shows the differences between the two generations.
In the conflict between grandfather and grandson, Ram's position become miserable Ram however, succeeds in convincing Rajesh about caring for his Dadaji. Rajesh soon realises the love and feelings of Dadaji behind his teachings. He is ready to marry, the girl of Dadaji's choice, despite being in love with Monica. It turns out that Dadaji's choice is also Monica.
After death, dadaji is reborn as Rajesh-Monica's son . and ram realizes that the dialogue of Dadaji's, 'Ke kal main tumhari taraf ungli uthakar kahoongake ke tum puraane ho gaye ho', will now apply to him.