Khushi tells the story of a boy and girl, who are in love, but are kept apart by their inflated egos. Karan (Fardeen Khan) is born in Kolkata, while Khushi (Kareena Kapoor) is born in a village in Uttarkhand. Karan intends going to Canada for further studies, but, due to an accident, is forced to enroll in the Mumbai University. Khushi's father (Amrish Puri) believes that she has studied enough and should now marry a boy who is ready to be his ghar-jamai. But Khushi insists on pursuing her education at Mumbai University. At the University, Karan meets Khushi through common friends, Vicky and Priya. These common friends fall in love with each other and it is up to Karan and Khushi to bring them together. In the process, the two fall in love. But with pride in the way, the two never get to express their love for each other till the time comes to bid goodbye.