Civil engineer and atheist Rajiv lives in Mumbai with his wife Aarti, his two children Raksha and Rohan, his mother, and the housemaid Laxmi.

During a party at his house, when he learns that the married couple have cheated him on a valuable contract for an IT firm in Delhi, Rajiv fires both of them after insulting them both.

Doctors are called for, but the strange behavior continues, with Raksha flying in the air, talking in a manly voice, acting in pain.

Manja analyzes the whole situation, sees Raksha, visits Rajiv's house, and tells the latter that someone is trying to take revenge on him, at which Vinay exclaims that it is none other than Madhu and Anshuman.

Manja also tells them that Rajiv's driver has been helping the duo by providing them with necessary materials like Raksha's hair, soil from her foot, and her toys to perform black magic.

Losing no more time, Rajiv, Vinay, and Manja rush to Madhu's house, where she and Anshuman are found to be doing black magic rituals on a doll, supposedly an effigy of Raksha.

Taran Adarsh gave it 4 out of 5 and said, "Phoonk is a fascinating cinematic experience on a subject that’s rarely tackled by the dream merchants in Bollywood: Black magic."

A sequel, Phoonk 2, released on 16 April 2010, to mostly negative reviews and a lackluster commercial reception, failing to repeat the success of the original.