At an award ceremony in Mumbai for his first book, 'Anand', Dr. Bhaskar Banerjee is asked to speak about the book. Bhaskar says that the book has been written based on his diary excerpts when he met Anand and narrates to the audience his experience with him.
Bhaskar, an oncologist, treats the poor for no charge but is often disheartened by the fact that he cannot cure all the ailments in the world. He becomes pessimistic after seeing the suffering, illness, and poverty all around him. He is straightforward and will not treat the imaginary ailments of the rich. His friend, Dr. Prakash Kulkarni, follows a slightly different path. He treats the imaginary illnesses of the rich and uses that money to treat the poor.
One day, Kulkarni introduces Bhaskar to Anand, who has lymphosarcoma of the intestine, a rare type of cancer. Anand has a cheerful nature and despite knowing that he is not going to survive for more than six months, he maintains a nonchalant demeanor and always tries to make everyone around him happy. His cheerful and vibrant nature soothes Bhaskar, who has a contrasting nature and they become good friends. Anand has the rare quality of attracting people and befriending them. In one such encounter, he makes Isa Bhai, a theater actor, his friend. They enjoy each other's company and create an emotional bond.
Anand's condition gradually deteriorates, but he does not want to spend his remaining days in a hospital bed; he, instead, roams free and helps everyone. He discovers that Bhaskar has strong feelings for Renu, whom he had treated previously for pneumonia. He helps Bhaskar express his love and convinces Renu's mother to bless their marriage. He tells Bhaskar that everyone should remember him as a lively person and not as a cancer patient. It is also discovered that he loved a girl back in Delhi who is now married to someone else because of Anand's illness. The day she got married, Anand came to Mumbai from Delhi to move on from her but kept a flower in his book in her memory. Anand becomes sicker with time and is now bound to the house. He records Bhasker saying a poem and himself delivering dialogue and both of them laughing together on tape. He is counting his last breaths as his friends gather around him but Bhasker is gone to bring medicines for him. He shouts for him and dies. Bhasker comes back just a few minutes later and begs Anand to speak to him. Suddenly, the tape starts playing with Anand's voice and his friends cry for him. A couple of balloons are seen flying away in the sky as Anand leaves the world and flies away in the sky.
