Baaghi is the story of Ronny (Tiger Shroff), a rebellious 23-year-old from Delhi. Fearing his unruly and angry temperament his father sends him to a disciplinary academy set in a sleepy town in Kerala. The movie starts with martial arts champion Raghav (Sudheer Babu) kidnapping Sia (Shraddha Kapoor) from her film's set and took her to Bangkok. Sia's father P.P. Khurana (Sunil Grover) goes to government offices for help but no one is ready to assist them since Raghav is an influential man. Khurana then turns to the man that shares a past with Sia: Ronny (Tiger Shroff).
In a flashback, Ronny and Sia meet on a train. Raghav sees Sia at the train station and tells his men to get information about her. Ronny visits the school of Guruswamy in Kerala. In a letter to Guruswamy, Ronny's father explains that Ronny is a Baaghi (rebel), and asks him to make Ronny a good human being. Ronny and Sia fall in love, and Sia gives him a ring she got from her father, asking him to always keep it. Raghav asks for Sia's hand from Khurana, but Khurana is overcome by greed when he sees how much money Raghav offers for Sia. He agrees to hand Sia over to Raghav but when he sees that Ronny has Sia's ring, he realizes she is in love with Ronny. He informs Raghav, who decides to kill Ronny.
Ronny beats up Raghav's men when they manhandle Subbu, a mute little boy Ronny is close to, only for Raghav to get him arrested later on. Guruswamy tries to persuade Raghav, his son, to stop pursuing Sia, but Raghav poisons and kills him to get him out of the way. Ronny is heartbroken to hear of Guruswamy's death since he had seen him as a father figure. Khurana then creates a misunderstanding between Sia and Ronny to separate them, which works and the two part ways.
In the present, Ronny reaches Bangkok and visits Raghav's fight club, beating the strongest fighter there to get Raghav's attention. The next day, Ronny breaks into the house of Raghav's right-hand man, Viju, and threatens Viju's wife at gunpoint, forcing him to reveal Sia's location. Ronny finds Sia and escapes with her. The two stop at an island on their way back to India, where Sia discovers her father's deceit when she sees that Ronny is still wearing her ring. The couple reconciles but Raghav and his men attack them. Viju shoots Ronny, who falls off a cliff.
Raghav takes Sia back to his place. It is then revealed that Ronny is alive. It turns out that Viju had used blank bullets in his gun, sparing him as Ronny had spared his wife's life earlier. Raghav kills Viju when Viju says that he believes Ronny to be right.
Ronny storms Raghav's building and single-handedly fights off all of the killers and swordsmen in Raghav's employ. He reaches Raghav, who initially overpowers him, but when Raghav reveals that he was the one who murdered Guruswamy, Ronny becomes enraged and uses Guruswamy's signature moves to kill Raghav. At the end, Ronny becomes the new teacher in Guruswamy's school, where a statue of Guruswamy now stands.