Brahmhdutt (Dilip Kumar), Premchand (Shafi Inamdar) and Mushtakq Ali Khan (Anupam Kher) are steadfast friends, for whom there is no greater God than love for each other.
Against his wishes, Brahmhdutt's daughter Sonu (Swapna) marries a poor man Indrajeet Sabharwal (Raghuvaran), who is already married to Radhika (Tina Ghai) and has a son Vijay, from the latter. Vijay takes off from home and grows up to be a dreaded Don in the city (Govinda).
Indrajeet is given the post of a Manager in a steel factory owned by Brahmhdutt and Premchand and here, he shows true colours. He wants success at any cost. In his evil designs, he first exterminates Premchand and indicts Brahmhdutt for the murder. Brahmhdutt is packed off to prison and the jailor is none other than Mushtaq. Indrajeet now takes charge of Brahmhdutt's business empire and shoves the latter's wife Sujata (Bharthi) of to the streets.
Not satisfied with the ill-gotten wealth, Indrajeet now wants to marry Premchand's only daughter and legal heiress Mohini (Madhuri Dixit) in order to usurp more wealth, but when she spurns him, he hires Vijay to wipe out her existence, little knowing that they are in love with each other. When Sonu learns about his, she confronts Indrajeet, but she is also fatally stabbed.
Brahmhdutt, in the meantime, completes his term in jail to the offence he never committed and reforms Vijay, at the instance of his mother Radhika, who had sheltered Sujata when she was thrown out of the house. Vijay joins hands with Brahmhdutt and together, they begin a battle for supreme rightousness and avenge the crimes committed by Indrajeet, which is folded in an intriguing thill-packed, mind blowing climax of "Izzatdaar".