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Bhoothnath Returns takes Bhoothnath's story forward. As he returns to 'Bhoot World' he is greeted with taunts and condemnation from other ghosts for bringing disrepute to the ghost-community for getting bullied by a kid on Earth. Post the humiliation, Bhoothnath decides to redeem himself and come back to scare a bunch of kids. Bhoothnath's search for kids brings him to Akhrot, a slum kid who is also the only person who can see him. Together they agree to help each other and their friendship sees them get involved in a cause that is bigger than they had ever imagined. To move ahead they will need to take on one of the country's most powerful and corrupt politician Bhau. Bhoothnath Returns is an entertaining tale of good against evil, weak against powerful, past against future.