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The movie starts with typical hostel in Delhi University, where street-smart Bittoo Sharma (Ranveer Singh) collects money from everyone in the group to gate-crash into a wedding for tasty food. While standing in the queue in the food counter, Shruti Kakkar (Anushka Sharma) who assists the wedding coordinator suspects that he is neither from the groom or bride's side. He is successful in convincing her that he has a right to be at the wedding by calling his friend who is the videographer for the wedding. After watching her dance at the wedding, Bittoo likes Shruti and makes a video of her during the sangeet dance routine. Later he calls Shruti's employer and while pretending to be the groom's uncle, gets her full name and college. After finding this information, he gets on university bus while she is in it and tries to give her the DVD to impress her. She finally accepts it and tells him of her dream of opening a wedding planning company. Bittoo makes fun of her and she gets angry with him. When Bittoo's father comes to take him back to his village so they can plow the fields together, Bittoo refuses and lies to his dad that he and Shruti are going into business together. He goes to Shruti with this idea and she refuses but after seeing his persistence, agrees. They name the company "Shaadi Mubarak". Together, their enterprise is a success with the work equally split between the two. Their first project is low budget but is very successful. Following its success, they go on to plan many more small weddings. Later they migrate to posh colonies of Delhi and get their first big client. After working night and day, they make a huge success out of that event and are ecstatic. At the night of the event, they dance to celebrate their success and Shruti gets drunk. She falls for Bitto and they have sex that night. After waking up Bittoo realizes the mistake he has made as he is not in love with Shruti but does not want to hurt her feelings and acts strangely. Shruti also is extremely nice to him which is unlike her real personality and in an argument Bittoo throws back her own words at her that business and pleasure don't mix and he does not love her. This creates a very tense atmosphere between the two and Bittoo leaves Shaadi Mubarak to create his own wedding planning enterprise called Happy Wedding. Both of them attempt to prove themselves in the industry and provoke other people to go against the other. However, both the enterprises suffer huge losses. They finally get a contract in which they are asked to work together as a team. Both of them, unwillingly, take it up for the sake of recovering their losses. After they start working for the wedding, Bittoo finds out that Shruti is engaged to a businessman in Dubai. Bittoo keeps on pestering Shruti asking her whether her engagement was an attempt to make him jealous. Shruti answers that she is not doing it for revenge but for her own security and her parents' satisfaction to see her well settled in life. She acknowledges that she did fall in love with Bittoo but if he doesn't feel the same, she has since moved on. Finally, Bittoo realizes that he was always in love with her but just didn't know it. It was only the thought of losing her that made him realize this. Then they fall in love but this time they both. They both share a tender, passionate kiss. The end shows both of them dancing at their own wedding with their friends and family surrounding them.

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Yash Raj Films announced the then-untitled project on February 4, 2010. Maneesh Sharma, who has been an associate or assistant director on a number of Yash Raj Films productions such as Fanaa, Aaja Nachle and Rab Ne Bana Di Jodi, makes his feature directing debut with this film. Sharma also came up with the film's story, however the actual screenplay was written by Habib Faisal, a writer who has worked on a number of other romantic comedies for the company, such as Salaam Namaste, Ta Ra Rum Pum and Jhoom Barabar Jhoom. Sharma described the story as "a quintessential Delhi tale, inspired by events in his own life". A relatively low-budget film costing 100 Million Rupees (a little more than US$2 million at the time), Band Baaja Baaraat is produced by Aditya Chopra and executive producers Aashish Singh and Sanjay Shivalkarr.

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Prior to its release, Band Baaja Baaraat was accused of being a rip-off of the 2001 American film The Wedding Planner, which was denied by a Yash Raj Films representative. But Story line of Band Baaja Baaraat is totally different.