A remake of the Telugu movie 'Kshana Kshanam', 'Hairaan' revolves around an innocent damsel, Asha (Sridevi), who unknowingly gets the possesion of a clue leading to the money robbed from a bank by a criminal gang. She gets hold of the money, but the gang follows her to get their money back. For some reason, the gang members get into a fight amongst each other. One of them is killed and the deadbody is left at her place. She blames herself for the murder and runs away from the police. While police arrives at a hotel to arrest Asha, a petty thief, Chandu thinks that the cops have come to arrest him. So, he escapes with Asha after threatening to kill her. As time passes, Asha and Chandu fall in love. How will they save themselves from the gang of criminals and the police? Will Asha ever know that she has murdered anyone?