INFO Hera Pheri ended with the trio of Raju (Akshay Kumar), Shyam (Suniel Shetty), and Baburao Ganapatrao Apte (Paresh Rawal) rich and rolling in money. Phir Hera Pheri tells the story of what happens after they become rich.
The film opens with a prologue bringing the audience up to date, stating that each has suffered a loss as well as a gain. They all became rich, but Shyam lost Anuradha in an automobile accident, Raju's mother has died and Baburao--not really having much to lose in the first place--has lost all common sense.
The three men are living large in a massive bungalow and splurging on various luxuries. Raju hears about an idea of doubling his wealth from a con woman Anuradha (Bipasha Basu) claiming to be a bank manager and convinces Shyam and Baburao to go along with it. They also convince a goon on the street,Pappu (Rajpal Yadav) to contribute Rs. 20 lakh (2 million) so that they can come up with the minimum deposit of Rs. 1 crore in order to double their money. Raju also sells the bungalow to contribute to the Rs. 1 crore.
They invest Rs. 1 crore (10 million). Three weeks later Raju, Shyam and Baburao find out that it was all a scam and become penniless. The goon is also in trouble because he had borrowed money from a dreaded gangster who suffers from a lisp, Tiwari (Sharat Saxena), who will kill him if he doesn't pay up. Raju, Shyam and Baburao now have three days to come up with money to pay back the goon or else they will be killed. They have to leave their bunglow and live in a chawl owned by Anjali's (Rimi Sen) father.
Then they steal drugs from their neighbor (Johnny Lever) who also stole drugs from another don (Milind Gunaji). The drugs are worth about 3 crore (thirty million). They think that they can sell them to Kachara Seth (Manoj Joshi) and pay off Tiwari and they would also become rich. But their neighbor once again steals the drugs from them. They run into Anuradha and she tells them that the entire scam was hatched by Kabeera (the gangster from the first Hera Pheri) to get revenge on the trio, and that the only reason she went along with it was because they were holding her niece hostage (Anuradha's sister was part of the first movie's kidnapping plot). Their money was converted to diamonds to pay the ransom, but she fled them once she discovered her niece had escaped.
In the end, all guys end up in a circus show to get hold of the diamonds. These are strewn all over the ground in public by a gorilla. Raju escapes with Pappu's cellphone and three big guns with him, which are worth crores of rupees and he does not know about it. So he tries to throw the guns into the river to get rid of the whole trouble. But fortunately for him, the guns get stuck somewhere. He tries to go down and throw them into the water. When Baburao and Shyam come to know about the worth of the gun from Pappu who is arrested, they call him on Pappu's phone. The film ends with Raju busy trying to reach for the guns with his phone ringing.
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