A daughter is born in the house of the Mughal Sardar Sher-e-Koh and is named Kauser. When she grows up, Sher-e-Koh wishes to wed her to Hamid Khan, the only son of his dearly departed brother. One night during a celebration with firecrackers the palace accidentally catches fire. A soldier named Nizam Khan valiantly dives into the flames and rescues Kauser. Nizam Khan is instantly smitten with Kauser.
With the help of his friend Azim, Nizam and Kauser start meeting in secret. Soon, Kauser falls in love with him as well. But she is aware that the prideful Sher-e-Koh will never agree to her marriage with a poor soldier. Sher-e-Koh offers Nizam any reward he may desire for saving his daughter’s life. But when he dares to ask permission to marry Kauser, he is sentenced to death. Fortunately for Nizam, when he is about to be executed the royal procession of Emperor Humayun passes through the city. In accordance with royal law, all criminals must be spared when the Emperor passes by. Nizam Khan is spared but he is terminated from his post.
Nizam Khan manages to become a water-carrier in the palace with Azim’s help. Meanwhile war breaks out between Emperor Humayun and Sher Shah Suri’s forces. During the battle the Emperor falls into the water from his horse. He is rescued from this predicament by Nizam Khan. As his reward the Emperor promises to grant him anything he wants. In the guise of a water-carrier Nizam continues to meet Kauser. Sher-e-Koh, on the other hand, has acquired the royal farman for Kauser’s marriage with Hamid Khan. When this news reaches Nizam he asks for an audience with the Emperor. As his reward he asks to be made Sultan for one day. The honour of Humayun is such that he grants even this seemingly outlandish request. As Sultan, Nizam attempts to annul Kauser’s proposed marriage with Hamid. But Sher-e-Koh vehemently opposes this and is prepared to take up arms against him. Nizam realises that his request might tear the Sultanate apart. He wishes to sacrifice his love for Kauser but is not allowed to do so by Humayun. It is revealed that Sher-e-Koh never asked for Kauser’s consent for her marriage as is required. Sher-e-Koh is ordered to accept Nizam Khan as the groom for Kauser. The film ends with Nizam and Kauser welcoming a new-born son into their family.