Bhagam Bhag is produced by Shree Ashtavinayak Cinevision Ltd and Popkorn Motion Pictures Private Limited, and is directed by Humor king Priyadarshan. The story goes as follows.

Paresh Rawal has a theatre group in India and he performs shows all over the country. Akshay and Govinda along with others are actors in the group. Both are very naughty natured guys who never miss any chance to flirt with girls, even the girls in the group. At the completion of one show, an organizer offers Paresh's group to perform 30 shows in England. They all get very excited but as per the contract they need to leave for England on the same day. Unfortunately the heroine of the play opts out due to Akshay's misbehavior.

They reach London and through Rajpal, a taxi driver, Govinda and Akshay try to find out a girl for their play but it leads to many misunderstandings and a series of funny sequences. In this process, Govinda and Akshay fall into trouble involving a drug baron and other mishaps.

Thereafter, the trio discovers a girl (Lara Dutta), who suffers from amnesia to act in their drama and just as Akshay and Lara fall in love, her memory returns and it brings chaos into their lives, including a murdered husband!

From here the story leads to its climax in which a major conspiracy gets exposed.