The narrative unfolds through the eyes of Gulabji (Rani Mukerji), a prostitute who often visits the opulent RK Bar, the most exclusive club in town. She recounts her past through flashbacks, particularly focusing on one fateful night when she encountered Raj (Ranbir Kapoor). Known as "Saawariya," which translates to "blue lover," Raj is a free-spirited and compassionate individual who has recently arrived in town and is embarking on his first performance at the bar.
Unlike the other patrons, Raj shows genuine kindness towards Gulabji, treating her and the other women in a manner that reflects humanity rather than disdain. His heartfelt songs soothe their crying children, as he attempts to lighten their burdens. As their friendship blossoms, Gulabji informs Raj that if he seeks a place to stay, the only one who can help is Lilian ([Zohra Sehgal]), a woman known for her particular affections.
When Raj meets Lilian, an emotional exchange ensues where she shares the poignant tale of her son, who left her 37 years prior and never returned. This connection leads Lilian to allow Raj to reside with her, as he reminds her of her long-lost child. Recognizing Lilian's profound loneliness, Raj offers to assist her around the house in hopes of earning his keep.
Later that evening, Raj encounters a mysterious woman who initially rebuffs his attempts to speak with her. Yet, sensing danger when a drunken man pursues her, he steps in to offer protection, leading her to agree to allow him to walk her home, albeit without holding hands. Despite Raj's efforts to spark joy in her somber demeanor, the woman, named Sakina (Sonam Kapoor), feels guilty for the fleeting moments of happiness.
As Raj and Sakina grow closer, he falls deeply in love with her. Lilian encourages their bond and looks forward to meeting Raj's beloved. However, Raj soon learns that Sakina harbors feelings for another man, Imaan ([Salman Khan]), who has left for an undetermined time but promised to return on Eid. Heartbroken yet unwilling to give up hope, Raj grapples with his feelings while penning Sakina's name across town.
In a turn of emotional turmoil, Raj is counseled by Gulabji to finally express his love for Sakina. With encouragement from the community, he makes plans to propose on Eid night at the RK Bar, performing a heartfelt song. Just as he gathers the courage to confess, Sakina cuts their evening short, claiming her appointment with Imaan.
Devastated, Raj seeks comfort with Gulabji, who, despite her affection for him, feels betrayed and pushes him away. As Raj returns to Sakina, he discovers that Imaan has indeed come back. Caught between her past and present, Sakina faces a decision that tears at the heartstrings, ultimately reuniting with Imaan as Raj urges her to follow her true desires. The poignant tale concludes, echoing the complexities of love, loss, and the choices we make.
