Khudgarz is an action family drama. The movie follows the story of two childhood friends - Amar (Jeetendra) and Bihari (Shatrughan Sinha), who became inseparable after one incident in their childhood. Amar is the son of a rich businessman, while Bihari lives a poor lifestyle. After growing up, Amar gets married to rich girl Jaya (Bhanupriya), while Bihari marries a poor laborer. Amar’s father is not really happy with their closeness and plots to create a misunderstanding between the two friends. Will the friends still manage to be united despite any misunderstanding?