The Gulaab Gang members are activists and vigilantes in Bundelkhand Uttar and Madhya Pradesh. They wear pink sarees and take up issues like domestic violence, the dowry system, rape, electricity matters, and education. Their fierce leader, Rajjo (Madhuri Dixit), locks horns with a conniving and shrewd politician, Sumitra Bagrecha (Juhi Chawla), who uses people.

Rajjo runs a Gulaab gang in the village of Madhopur, where she teaches little girls their alphabet, and grown-up girls how to wield a lathi. Her gang is made up of women who wear bright pink. Rajjo's closest friends in the gang are a tomboy (Divya Jagdale), a woman abandoned by her husband (Tannishtha Chatterjee), and a kohl-eyed woman (Priyanka Bose).

These ladies go about standing up for the meek and the downtrodden, and clash against villainous husbands, cops and politicians. The plot gains momentum when Rajjo decides to take part in the local elections against a manipulative and conniving politician, Sumitra Devi played by (Juhi Chawla). Sumitra does her best to make sure Rajjo is incapacitated during election campaigns by having most of her gang members killed by the henchmen. Towards the end, Rajjo decides to take revenge against Sumitra.

During Holi celebrations, when Sumitra conspires to finish off the Gulaab Gang, Rajjo retaliates by chopping off Sumitra Devi's hand as the latter tries to shoot the gang with a machine gun. At the end, Sumitra is arrested and is sentenced to life in prison and Rajjo is also arrested for her violent retribution. However, Rajjo eventually realises her dream of establishing a school for unprivileged girls.