Phone Bhoot is a horror comedy about two good-for-nothing friends named Major (Siddhant Chaturvedi) and Gullu (Ishaan Khatter) who share a common interest of love for the horror genre. Their love for horror makes them set their home as a simulated haunted house that makes them see ghosts but aren't scared of them. One fine day they meet a female ghost named Ragini (Katrina Kaif) who proposes them a business plan where they’ll get paid to call wandering souls and, in turn, help the souls attain salvation. Hearing this Major and Gullu agree to Ragini’s plan who has an ulterior motive which is to free the trapped soul of her lover from the clutches of an evil magician of sorts. Do Gullu and Major get to know Ragini’s objective, will they make a fortune of this business or there’s something else to the tale?