The story is about a director, Sharma, whose father owns a sweet shop and wants his son to work there. But Sharma wants to become a director, so he leaves for Mumbai to fulfil his dreams. While travelling in the bus he meets a Paddi Singh and he notices that his face resembles Osama Bin Ladin. He gets an idea and takes him to the film producers Shetty Sisters, who give chances to newcomers. They become impressed after hearing his idea and especially seeing Paddi.
After the film Tere Bin Laden starring Ali Zafar becomes a blockbuster, Ali starts embarrassing both Sharma and Paddi. Sharma wants to make the sequel of the film, but Shetty Sisters decide not to help him as Ali wants the sequel to be produced by Karan Johar. This results in a fight between Ali and Sharma. Paddi comes to the rescue and tells Shetty Sisters that he will do the sequel only if it is produced by Sharma and Ali is not the lead actor. Shetty Sisters decide to fire Ali.
Now everyone is confused how can the film do well as it has no renowned actor. Once the shooting starts a blunder happens; Osama dies and thus shooting stops as they know that the film will not do well. Shetty Sisters keep asking for returning their money but Sharma has used all. Also on the other side, USA president Obama, who has assassinated Osama, he has to prove to assure people about his assassination but he lacks proof. They accidentally see Paddi on TV and make up a plan to and make a video of his assassination as a proof. So David DoSomething disguises himself as David Chadda, then visits Paddi and offer him to act in a Hollywood film but Paddi puts a condition that he will do the film only if Sharma directs it. Chadda agrees and tells them that the next day their driver will come to pick them up.
In some other place there is Khalili, who owns a terrorist organism and has a business of selling guns and bombs but due to financial crunches he is not able to make good equipment so all his people go against him but he calms them down by telling them that he will provide them with free food and a movie of Osama's adventures. In-between the movie there comes a shot of Paddi, and Khalili gets it that Osama is dead, so he plans to bring Paddi and make him tell his people that he is the best supplier of bombing equipment and guns. He sends his men to kidnap the cast of TBL. They first go to Ali Zafar but fail to kidnap him due to his "Six Pack Abs", so they go to kidnap Paddi.
As said by David that he will send a driver to pick them up before him Khalili's men reach there. While Sharma and Paddi think they were sent by David, they sit with them in their car and get kidnapped by them.
When Chada comes to know about it he also reaches to Khalili's place and rescues the whole cast of Tere bin Ladin. Now he wants to capture a video in which Osama (Paddi) is shot by the American army. When Sharma comes to know about it so he deals Khalili and Chadda. Chadda pays Khalili the money he wants and Sharma makes a proof movie in which Osama (Paddi) is shown shot by Obama. Obama then asks Sharma to make anyone request, so he says, "one Hollywood movie". In the end, it is shown that Sharma has made a movie Tora Bora Nights.