Kaun Hai Jo Sapno Mein Aaya is the story of a Punjabi family settled in the United Kingdom.

The heads of the family are Dadi Ma, and her son, Kuldeep Khanna (Kadar Khan). Kuldeep's family comprises of his sons, Harry and Sunny (Rakesh Bapat), his daughter, Dolly, his daughter-in-law, Pramilla, and a teenaged grand-daughter, Sweety.

Even though they all lived under one roof, most of them have adapted themselves to the western way of life, and therefore are hardly representatives of the great Indian family tradition.

Sunny is a dreamer, whose focus in life is poetry. In this cauldron of daily existence, Mahek (Richa Pallod) makes a sudden appearance.

She's come to live with them for a few days as her uncle, Dr. Verma (Anupam Kher), who is a good friend of Kudeep's, is away to America for an important conference. She is greatly disturbed by the dysfunctional attributes of her host's family, and tries to bring them all together.

She, however, fails to do so. In addition, in the process of trying, Mahek becomes an unwanted guest. Finally, Mahek is asked to leave under the guise of causing Dadi Ma's death due to negligence.

After Mahek's departure, the Khanna family discovers the painful secret of her life. 

When the whole family comes to know the reality, they now want her back. Sunny is sent to get Mahek back to the Khanna residence. She refuses to do so, as her yearning in life is to be loved, and not pitied. Sunny who is in love with Mahek by now, is crestfallen.

What happens thereafter forms the crux of this endearing romantic family drama. Kaun Hai Jo Sapno Mein Aaya is directed by Rajesh Bhatt and has music by Nikha-Vinay.