Chal Bhaag revolves around three men, Munna, a self-proclaimed goon, Bunty, a small-time thief and Daler, an outcast. The film starts with an MLA being murdered by three shooters, putting the police force under pressure. The incident coincides with the arresting of Munna Bunty and Daler for their small-time crimes.

The shooters belong to a dangerous don who has the police inspector under his thumb. He threatens the police inspector to let go off his men. The inspector, under the don's pressure, frees his men and replaces them with Munna, Bunty, and Daler. The story takes a sharp turn and turns into a fake encounter plot. How Munna Bunty and Daler get themselves out of this situation is to watch.