Three women, Mary, Marina, and Meena, are each sent a toy clown and invited to the last performance of the famous clown Raj Ranbir aka Raju, in his first time on stage in 20 years. The stories of these three women and their relationships with Raju are told through a series of flashbacks during his performance.
Chapter I
As a chubby, clumsy 16 year old, Raju is known to his schoolmates as the class clown. Unlike the rest of the students at his private Christian school, Raju is poor and lives nearby with his mother and no one else. When a new teacher, Mary, comes to his school, she encourages Raju to find his ambitions and makes him more confident in himself. One day, after coming home, Raju asks his mother what his deceased father did. Despite rejecting this question in the past, she finally answers that he had worked as a clown in the circus, and died in an accident there. Raju proclaims that he will be just like his father and make everyone laugh, to the horror of his mother, who says his father had only given her tears. On a school trip to the forest, Mary accidentally falls into the river. After she comes out, Raju becomes entranced by the sight of her leg. He then follows her to a grove, where he sees her undressing. When he tries to sleep that night, Raju imagines her nude. He goes to the church to confess (Raju thinks himself a sinner for imagining his teacher nude); and after he does that Mary sees him there, and when he says he committed a sin she says that he can't have committed a sin as he is a child, Raju replies that he isn't one. When Mary and the rest of the students leave for the holidays, Raju gifts her a toy clown that his father had. Afterwards, he roams around the school, lonely and depressed. When Mary comes back, Raju is startled to discover that she has a male companion named David with her. After Raju comes to the couple's house, David starts becoming suspicious, and confronts him after he leaves but still waits outside. When Raju drops his books in shock, David discovers a paper with her picture and a heart surrounding it. Raju's mother becomes sick, and he starts dressing as a clown to sell various concoctions on the roadside to pay the school fees. However, after his classmate's mother sees him, Raju is expelled. Mary consoles him, and tells him that she will also be leaving to marry David. He attends the wedding as best man. Before the newlyweds drive off to their new life, David gifts Raju back the toy clown.
Chapter II
Raju and his ill mother move to several cities over the years before coming to Bombay. Now an adult, Raju is working as a clown at a local fair. When a group of Russian entertainers come to Gemini Circus to promote Indo-Soviet relations, he sneaks in with them and pockets their first payment. Raju claims that he is the Russian ringleader, which immediately causes Gemini's own ringleader, Sher Singh, to conspire against him. During his initial performance, Sher Singh switches off the lights, which lands Raju in a dangerous situation. After the actual ringmaster comes in, Sher Singh saves Raju and brings him to a meeting to explain himself. Raju explains that he needed a job to take care of his mother, and that he had to resort to this drama to get into the circus. Realizing his potential, circus owner Mahendra Kumar hires him. Marina, the lead trapezist, also notices him, and despite the language barrier, they become close. He comes back to his mother and tells her that he got a job, but leaves out the details. She hopes that he will be able to find a wife to "complete" the family. Soon, Raju is hired as a clown, and eventually he and Marina fall in love, with his toy clown being given away once again. However, Mahendra reminds him that the artists will be going back soon, and discourages his love. Raju and Marina meet again, and Marina realizes that his mother sees her as his future wife. She visits her again, but leaves her the toy clown departs tearfully. Raju's mother realizes through the poster that wrapped the toy that he is a clown once again, and rushes to the circus on the day of the Russians' last performance. Seeing him on the trapeze, Raju's mother dies, being reminded of the accident which caused her husband's death. Despite his sorrow, Raju performs as a clown that night. Afterwards, he decides to resign, citing his mother death. The chapter ends with Raju seeing Marina off at the airport.
Chapter III
Alone again, Raju wanders on the beach and throws his toy clown into the sea. A dog runs out to catch it and gives it back. The dog belongs to the orphan Meenu, and the three partner up to make a roadside show and live together in an abandoned house. One day, Meenu's shirt is torn and Raju, upon discovering that she is a girl, deserts her. After a while, he comes back to her home, where she explains that her real name is Meena and that she had to act like a boy to survive on her own in the city, which she had fled to, to achieve her dream of becoming a famous actress. Raju gifts her a saree, but despite the explanation, Raju is mad that their friendship was based on a lie and leaves. After Meena confesses her love for him, Raju changes his mind. Their singing gets noticed and the duo start performing at a qawwali venue. One day, the dog gets taken by the city pound, mistaken for a stray. While Raju mourns the loss of their companion, Meena says that they have no use for it anymore. Her attitude shocks Raju and he figures that she only uses love as a tool to use others. Despite his pity for the qawwali venue owner who had already pre-paid them, Meena makes them move into theatre acting. While Meena maintains that she loves him, Raju is suspicious. After a while, Meena is noticed by movie star Rajendra Kumar, who wants a new heroine for his next film. Although Raju accompanies Meena to the screen tests, Kumar tells him that in order for her to become a great actress, Raju must leave. After a farewell at their old house, Raju is left alone with his toy clown.
The film then transitions back to his last show. After a song Raju announces an intermission of indeterminate length, but then reassures the audience that the "joker" still has more to perform to keep his audience laughing. The film ends with the words "Positively Not The End".
