Bhool Bhulaiyaa tells the story of Avni (Vidya Balan), a psychiatric patient who shifts to an old mansion with her husband, Aditya (Akshay Kumar). The mansion has a dark history, and Avni soon discovers that it's haunted by the ghost of a princess named Manjulika (Kangana Ranaut). As the story unfolds, Avni's sanity is tested, and she must confront the evil spirits to save her marriage and her life.

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