Raaz 3 movie story revolves around Shanaya (Bipasha Basu), an actress at the height of her success. She gets offered the best roles and wins all the awards she's nominated for.

In addition, she also has a passionate affair with a handsome director named Aditya (Emraan Hashmi).

This all ends when a younger actress, Sanjana (Esha Gupta) makes her film debut. Suddenly, Shanaya seems forgotten and everybody only wants to work with Sanjana. Soon enough, Aditya also leaves Shanaya for Sanjana, and Shanaya sees her career fading away and she slowly becomes crazy.

She begins to turn to black magic and makes it her goal in life to destroy Sanjana and get back the man she loves, Aditya.