Yeh Mohabbat Hai is a love story with the angle of terrorism thrown in. But the track of terrorism is treated as if it were child's play.

A Muslim girl falls in love with a Muslim guy in a town in Kashmir. The guy leads a cricket team to Bombay where he ends up being framed for possession and supply of RDX to terrorists. In a police encounter, his team-mates are gunned down but he escapes death albeit with severe burn injuries. While the people of his town, on hearing the terrible news on television, believe that he must've joined hands with terrorists and misled his friends to their deaths, his girlfriend and his parents refuse to buy the story.

The girlfriend then sets out to come to the rescue of her boyfriend who has by then landed in jail. She has limited time because her father, who also believes the guy must have been a terrorist, has finalised her marriage to another boy. The boyfriend escapes in a daring attempt orchestrated by the girl and her friends. He, however, refuses to marry her till he proves to the world that it wasn't because of him that his friends were murdered. In trying to pin down the real terrorist and his friend, who is known to the girl's family, the boy lands himself in trouble. Another attempt is made to expose the family-friend and the innocent boy meets with success just as his girlfriend is about to be married off.