After dreaming of a beautiful girl for over 8 years, Budapest-based but born in Rajasthan, Karan, finally gets to meet her in the shape and form of Varsha, who happens to be the foster daughter of his lawyer, Sahid. Karan is confident that Sahid will convince Varsha to marry him - little knowing that Varsha will not only refuse to marry but she also hates men, and had a parallel New York-based lifestyle as Payal Mehra.

A singer by profession, Suraj gets stranded in resthouse in the coutnryside during a rainstorm. While there he experiences ununsual feelings, as if he has been there before. He feels himself transported to another time and era, to another birth, and drawn to a woman named Ratna. He is unable to leave this experience behind him, and decides to find out what this means. He discovers that in his past life he was a Chief Singer in the emperor's court, his name was Prakash and he had fallen in love with a courtesan named Ratna, much to the chargin and anger of his family and the emperor's and his officials. They are tragically separated. He subsequently comes across a portrait of Ratna, and shortly after he meets a gypsy, Jhumri who looks exactly like Ratna. Soon Jhumri is also able to recollect her past life, and her love for Prakash.

Mehbooba is a Costume Drama, starring Nalini Jaywant, Shammi Kapoor, Hiralal, Achala Sachdev, and Gope.

Mehbooba movie is a romantic love story in the backdrop of 1971 Indo-Pak war.