The movie is set in the coal-rich town of Wasseypur in Uttar Pradesh, India. The story revolves around the rise of a small-time gangster, Dongri (played by Tilakshana), and his confrontations with the British Raj and later, the Indian government. However, the central plot focuses on the character of Shahid (played by Nawazuddin Siddiqui), a local gangster who gets involved in a series of violent conflicts with other gangs and the police.