Twelve year old Vijay lives on the island of Mandwa, with his mother and his well-respected schoolmaster father Dinanath. Kancha Cheena (Sanjay Dutt) arrives, asking for the lease of the villagers' land in an exchange for profits from a supposed salt factory. In reality, Kancha plans to take over the island for the manufacture of cocaine. Vijay's father warns the villagers against Kancha. In retaliation Kancha frames him for the sexual assault of a disabled young girl in his school; the villagers turn against the schoolmaster and hang him.Vijay and his his pregnant mother flee the island. In Mumbai, Vijay is taken under the wing of crime lord Rauf Lala (Rishi Kapoor) who is wanted by police for trafficking of girls. Vijay is the witness of a murder committed by Rauf, but refuses to testify against him. When the corrupt cop (under pay from Rauf's enemies) terrorizes Vijay, Vijay shoots him & takes refuge with Rauf, who is impressed by the potential in this young boy. Vijay's mother disapproves of the path taken by Vijay & takes her daughter, Shiksha, away from Vijay's influence. Vijay yearns for the love of her mother & sister.Fifteen years later, Vijay (Hrithik Roshan) is ready to return to Mandwa. Kaali (Priyanka Chopra) lives in the same Chawl as Vijay & loves him. Vijay begins by thwarting Kancha's plan to sell cocaine directly in Mumbai by sabotaging his network routes via a state minister. This earns Rauf's trust. Then he gets one of Kancha's captured goons to fire on Rauf. Vijay takes the bullet & becomes a son in the eyes of Rauf Lala. Then at the wedding of Rauf's son Mazhar, he engineers a coup by luring Mazhar out & then killing him, making it look like Kancha has ordered the killing. Rauf has a heart attack & is hospitalized. Vijay now is the undisputed drug retailer of Mumbai & goes to meet Kancha in Mandwa to make a deal for Kancha's supply of drugs to Mumbai.Kancha treats Vijay with caution & informs him that Rauf has come out of hospital & kidnapped Shiksha for sale. Vijay attacks & kills Raufbefore he can sell Shiksha. Vijay mum tells Shiksha that Vijay is her brother. Siksha goes to visit Vijay in the Chawl & the whole Chawl comes out to greet her like their own sister.One corrupt cop in the pay of Kancha finds that Vijay is the son of Dinanath & his mum & sister are alive. As Vijay proposes marriage to Kaali, Kancha sends his goons to attack the wedding party. Vijay survives, but Kaali dies. Kancha then kidnaps Vijay's mum & sister & forces Vijay to come to Mandwa. Vijay attacks Mandwa & fazes Kancha, but Kancha is way too strong. Kancha stabs Vijay & shoots him, but Vijay refuses to die. Now Kancha drags Vijay to same lynching tree where he killed Dinanath.Vijay gathers his last strength & defeats Kancha & lynches him instead. He dies in the hands of his mother & sister. Vijay's mum finally forgives Vijay for the Agneepath he had chosen.