Sidhu (Akshay Kumar) is a lowly vegetable cutter at a roadside food stall in the Chandni Chowk section of Delhi, who consults astrologers, tarot card readers, and fake fakirs despite his foster father Dada's (Mithun Chakraborty) exhortations. When two strangers from China claim him as a reincarnation of war hero 'Liu Shen' and take him to China, Sidhu, encouraged by trickster Chopstick (Ranvir Shorey), believes he will be feted as a hero, unaware of his own recruitment to assassinate the smuggler Hojo (Gordon Liu).
Sidhu travels to China with Chopstick. Along the way he meets Sakhi (Deepika Padukone), the Indian-Chinese spokesmodel known as Ms. Tele Shoppers Media, or Ms. TSM, who also appears in China. Her twin sister Suzy, known as the femme fatale Meow Meow, works for Hojo, not knowing Hojo tried to kill her father, Inspector Chiang (Roger Yuan). Sidhu, through a series of accidents, initially eludes Hojo, but Hojo eventually exposes him as a fraud. Thereupon Hojo kills Dada, and Sidhu is beaten and urinated on by Hojo. Injured and disgraced Sidhu vows revenge. He thereafter encounters an amnesiac vagrant, whom he later identifies to Sakhi as Inspector Chiang. Chiang later recovers his memory and trains Sidhu in kung fu. When Hojo again meets with Sidhu, Suzy injures Chiang; but upon seeing Sakhi, betrays Hojo. Sidhu fights Hojo in single combat, eventually using a modified vegetable-cutting technique to overwhelm him. In the aftermath, Sidhu opens a vegetable stall in China, but is recruited to fight for some African pygmies. The film thereupon concludes with the announcement "To be Continued – Chandni Chowk to Africa".