Khushi story opens in Calcutta where a boy is born to a wealthy couple, a Tamilian father and a Bengali mother. After many close-up shots of the woman in labour the camera shifts to a village in Tamil Nadu, where a baby girl Jennifer is born in a middle class Christian family. After some encounters when they are too young to be aware of each other, they finally meet in college in Madras.
Though having feelings for each other, their own egos prevent them from expressing these feelings and finally even cause them to fight and split. But the need to unite another couple, whose union is being opposed by the girl's father, forces them to work with each other. In the end, they reunite and the scene closes with an on-screen lip-to-lip kiss.