It is a film adaptation of Salman Rushdie's 1981 novel of the same name. A pair of children, born within moments of India gaining independence from Britain, grow up in the country that is nothing like their parent's generation.In India, 1947, two newborn babies are swapped in a hospital, after which they are doomed to live each other's life in a country that is going through big changes.
The film begins with the narrator, Saleem Sinai, describing his much anticipated birth at the moment of Indian independence. The narrative jumps back to 1917 Kashmir. Saleem's grandfather, Dr. Aadam Aziz went to the Ghani mansion to have a look at the landlord's sick daughter, Nasim, without realising that she was going to be his future wife. The narrative jumps to Agra of 1942. Saleem tells his grandfather had contracted an optimism disease of those times and had become an ardent supporter of Mian Abdullah. But Abdullah while returning from a party with his secretary Nadir, gets assassinated by a group of his enemies. Nadir flees away to Dr. Aziz's house where Aziz shelters him in his cellar despite opposition from his wife Nasim. Saleem introduces Aadam's 3 daughters, Alia, Mumtaz and Emerald. During Nadir's stay, Mumtaz developed a bond with him which resulted in their marriage. Soon the marriage was broken when general Zulfikar and his team learned of his presence in the cellar. Devastated by the unexpected divorce, Mumtaz finds solace in the arms of the wealthy entrepreneur Ahmed Sinai.