Based on Hindu-Sikh unity, this film narrates the story of two persons Brij Lal, resident of Kishan Garh and Sher Singh, resident of Karam Garh. They are close friends who set an example by making the ultimate sacrifice for each other, thereby establishing that Hindu Sikhs are one and will remain united.
Lala Brij Lal is attacked by a gang of lathi chargers while he is on his way to Karam Garh. Sher Singh comes to his rescue. He fights with the criminals and saves Brij Lal from fatal injury. Brij Lal thanks Sher Singh for his timely help and they exchange their turbans to be ‘Dharm Bhai’. Brij Lal’s beautiful daughter Lajo is in love with the village doctor Prem. However, the village crook Jaggu has his eye on her.
One day Brij Lal lands in trouble because of his bad habit of betting. He loses a bet to Jaggu and as per the terms of the bet he can take whatever he touches first from Brij Lal’s possessions. Brij Lal’s entire family is scared as Lajo fears that Jaggu will try to take her away. Brij Lal then approaches his dharma bhai Sher Singh to help him wriggle out of this treacherous situation. Sher Singh with his wit and cleverness foils Jaggu’s devious plans. Having lost the opportunity to possess Lajo, an enraged Jaggu kidnaps her. Sher Singh rescues her and he thrashes him severely. Jaggu is sent to jail.
In the meantime, heavy floods devastate Karam Garh and its surrounding areas forcing people to move out of the village. This turmoil displaces the family of Sher Singh and his only son Bhag Singh is lost in the melee. In these difficult times, Sher Singh along with his wife Banto reluctantly go to Kishan Garh to seek shelter in Brij Lal’s house. While waiting on the outskirts of the village Banto snatches jewelry from Munna, Brij Lal’s son and locks him in a wooden box. She confesses her guilt when she comes to know that the child she has hidden in the box is none other than Munna. Ashamed, Sher Singh wants to leave the place but he is compelled by Brij Lal to stay in his house. Dr. Prem treats Munna to full recovery. Brij Lal decides to get Lajo married to Dr. Prem.
As the marriage ceremony of Dr. Prem and Lajo is in progress, Brij Lal’s house is burgled. While saving Lajo from the dacoits, Sher Singh kills the village Chowkidar. He is arrested and sentenced to seven years rigorous imprisonment.
Dr. Prem goes to Karam Garh to treat the flood victims. Despite an incidence of dacoity in his native house, he prefers to go to the war front to treat injured soldiers. Meanwhile, the flood victim Sher Singh’s son Bhag Singh is traced and is treated by Doctor Prem. Lala Brij Lal visits Sher Singh in Jail to break the news to him. When Sher Singh is released from prison, Brij Lal arranges the marriage of Bhag Singh.
When he comes to know of this, Jaggu escapes from prison and reaches Kamalpur, where the wedding is set to occur. He challenges Sher Singh to a fight. Brij Lal takes a bullet meant for Sher Singh, and is fatally injured, sacrificing his life for his friend. The police chase Jaggu and he is killed in the police encounter.