Ameeran lives a poor-lifestyle with her mom, dad, and brother, Jamal, in Faizabad, British India. When her dad testifies against the local corrupt cop, Dilawar Khan, Khan swears to avenge this humiliation, and several years later, abducts Ameeran, holds her for ransom. When no money is forthcoming, he sells her. Ameeran ends up in a brothel run by Lucknow's Madame Khanum Jaan, where she is taught dance and poetry, and is subsequently re-named Umrao Jaan. Years later, Umrao has matured, is a well-known Courtesan with many patrons, chief amongst them are Nawab Sujat Ali Khan and his son, Sultan. Umrao and Sultan fall in love with each other, much to the chagrin of Sujat, who instructs Sultan either to give up Umrao or to lose his inheritance, and Sultan chooses Umrao. He gives up his father's palatial house and goes to live in the brothel, but re-locates to live with his uncle in Gadi after being taunted by Khanum Jaan.