Raju Pardesi (Govinda) is a fairly poor guy who wants to marry a rich guy's daughter, Chinii (Shilpa Shetty). However, the rich father is not impressed and demands that Pardesi must earn ?1,00,00,000 rupees within a year, and only then will he let him marry his daughter.

A chance encounter ends up with the overly honest main character accidentally picking up the wrong suitcase on his way home, and suddenly he is blessed with ?10,00,000 rupees. His honesty makes him go to the police station to hand it in, but there he is faced by dishonest policemen who only want to take the money for themselves.

He and his friend, Happy Singh, (Satish Kaushik) start to think about how they could make 10 million rupees from just 1 million. They enlist a scientist, Oldton (Virendra Saxena), who has a secret recipe for tea.. and start to sell their own brand of tea.

After the first week, however, they have only sold two packets because their tea is too expensive. Happy Singh suggests that they start their own tea company and leases a house, a large field of tea, and some workers.. on the main character's behalf.

The rest of the story revolves around the activities of the main character, Happy Singh, the workers and the house maid known as "Ms. Break-All".

• Govinda... Raju Pardesi
• Raveena Tandon... Karuna
• Shilpa Shetty... Chinni Malhotra
• Shashikala... Mai (landlady)
• Satish Kaushik... Happy (Harpal Singh)
• Aashif Sheikh
• Virendra Saxena... brother of Newton Oldton(Scientist)
• Mohnish Bahl... Naren
• Arun Bakshi
• Avtar Gill
• Deepak Qazir... Karuna's father
• Rajeev Verma... Chinni's Father

The music of all the tracks of Pardesi Babu were composed by Anand Raj Anand. Tracks like "It Happens Only In India", "Jave Sajna Main Nahin Karna" and "Kuch Khona Hai Kuch Pana Hai" gained a lot of popularity, although all tracks of the movie were popular. Mohammad Ali Ikram of Planet Bollywood quoted about the album-"Give Pardesi Babu a few listenings; it is an album which, as promised, comes Straight from the Heart."