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The grouchy Makhichoos, whoe hates Diwali, is digging furiously in the Dholakpur forest searching for a demon. Soon the demon emerges from the roots of a tree. Both the evil witch and Makhichoos plan to build a new kingdom on the eve of Diwali and teach Bheem a lesson. While Bheem and his friends are preparing for the celebrations, Chhota Hanuman also comes there to be a part of the festival. But something worse happens; Makhichoos and the evil witch kidnap princess Indumati. Will Bheem and Hanuman together rescue Indumati and triumph over the evil.