The story continues with DCP Yashwardhan (John Abraham), a strong and no-nonsense police officer who takes down criminals while still feeling the pain of losing his wife Maya (Genelia D'Souza) five years ago. One day, a novel is mailed to him by his best friend, Harish, an R.A.W. agent. Yash disregards it but then learnt that three R.A.W. agents were murdered, including Harish.
Shocked, Yash takes a second look at the book and finds Harish had inserted a clue: a "spy" is in the Budapest embassy, who is leaking information about R.A.W. agents as a plan to destroy them. When Harish is branded a traitor to India per R.A.W. protocol, Yash decides to clear his friend's name. He relates the clue to R.A.W. head Anjan, who teams him up with Kamaljeet Kaur (Sonakshi Sinha). The two butt heads but decide to stay out of the other's way on their mission in Budapest. They reach a safe house that Yash realizes is a trap: he escapes with KK right before the house explodes. Yash suspects Shiv Sharma (Tahir Raj Bhasin) to be the mastermind who is providing locations of Indian R.A.W. agents to Chinese spies. KK realizes that Yash is right, and confronts Shiv at his house, but Shiv knocks her over the head with her gun, incapacitating her. Shiv flees, and after a chase is caught and arrested.
Yash and KK attempt to bring Shiv to India alive but have to fend off Shiv's men at every turn; they at a loss on how his men are finding them. When they try to move Shiv to India via helicopter, he is shot by a Chinese spy and rushed to the hospital. Yash quickly realizes that this was simply a ploy for escape: Shiv is indeed alive. He calls Yash to taunt him and tells him to check KK's watch. Yash does so, finding a tracking chip that Shiv placed in it when she was knocked out. This was how Shiv's men kept hunting them down. Yash defends KK when Anjan questions her about the chip, explaining that he trusts her, and the two start to get along.
Yash and KK get Shiv's location from an informer, club dancer Martinez, but fail to catch him. Shiv gets two more R.A.W. agents killed, and Yash and KK realize Martinez is actually working for Shiv. Yash finds a clue in Shiv's old apartment and discovers that the real Shiv Sharma has been dead for ten years: Shiv is using a fake identity. His real name is Rudra Pratap Singh, son of former R.A.W. agent Karan Pratap Singh, who had been working for R.A.W. for thirty years before he was killed. As a result, Rudra's father was disowned from R.A.W. and branded a traitor by Cabinet Minister Brijesh Yadav. Unable to bear this, Rudra's mother committed suicide. Yash realizes that Rudra's target is not R.A.W. but Brijesh.
In the summit meeting, KK shoots Brijesh as a decoy so that Rudra's man is unable to kill him. Rudra goes after the wounded Brijesh, killing all of his guards. He reveals his plan to kill seventeen Indian R.A.W. agents stationed in Hong Kong. Yash shoots Rudra, but then turns the gun on Brijesh, forcing him to remove the "traitor" label from all deceased R.A.W. agents, acknowledge their actions, and compensate their families. Hearing this, Rudra dies in peace. Brijesh clears the names of the R.A.W. agents in an interview, including Yash's best friend and Rudra's father. Yash then sees a vision of Maya, who congratulates him and hints that KK is a nice match for him