Guns of Banaras is an action drama set in the town of Banaras. The film which is a remake of the Tamil film Polladhavan revolves around the life of Guddu (Karan Nath). He lives with his parents (Vinod Khanna and Zarina Wahab) and younger sister (Tanvi Rao).He works in a bank and is in love with Hema (Nathalia) who lives close by.
One day, Guddu's motorbike gets stolen and he files a complaint at the police station. This does not go well with Vikram Singh(Ganesh Venkatram) who is an underworld don of Banaras. It was at his behest the bike was stolen. On the other hand, Brijesh Singh, Vikram's elder brother is not in favour of him getting in a fight with Guddu. However, Vikam ends up beating Guddu's father to seek revenge. Guddu, in turn beats up Vikram.
The film then follows the narrative of how Guddu gets sucked into the world of crime.