Prashant is a coolie in the docks. He catches some smugglers and hands them over to the police. Prashant goes to the court to give witness against them but Shakal who is a smuggling king compels Prashant to take the blame on himself or else his wife Parvati and younger brother Ram would be killed. Prashant is forced to accept the crime and is sent to jail.
Thereafter, another underworld king called Sahu bailed out Prashant. Sahu was always being looted by Shakal. Prashant and Sahu get together and started looting Shakal.
Years pass by and Ram, younger brother of Prashant, grows up. He has a very close friend named Laxman. Laxman was an orphan and is brought up by Prashant. Laxman becomes a police officer in the anti-smuggling squad. One day a girl comes to report about some crime. She is Sapna and a very beautiful girl. Laxman falls in love with Sapna.
Ram takes Laxman to a hotel where they see a dancer girl Rita, who is extremely pretty and Ram falls in love with her. Ram and Laxman both are unaware of Prashant's underworld activities and both love him like their own father.
One day Laxman comes face to face with Prashant while he was in the midst of all illegal dealing. Laxman gets very upset. How can he arrest the man who is like a brother and father figure to him? Prashant's gang want Prashant to eliminate Laxman. But Prashant does not agree with this. One of Prashant's gangmen conspires with Shakal to eliminate Laxman as well as Prashant. Prashant tells his wife about it. And she tells him to surrender himself to Laxman.
In the meantime, Laxman comes to know that Shakal's men have planned to kill Prashant. He goes there to save Prashant. In the gun battle, Laxman dies while saving Prashant. Now Ram is furious and wants to avenge this death of his friend. He has been told that a gang called "Cobra Gang" is behind the killing of his friend. At one stage Ram comes to know that his own brother is the head of the Cobra Gang. Ram is shocked and leaves his house. What happens after that "Aakhri Baaz" will tell you on the silver screen.
[from the official press booklet]