Lagaan is the story of a battle without bloodshed fought by a group of unlikely heroes led by Bhuvan (Aamir Khan), an enigmatic young farmer with courage born of conviction and a dream in his heart. Set in India in 1893, it combines sports with political intrigue, romance with evil scheming, 

The story takes place at the height of the Raj, England's government of occupation in India. In a remote province, the local British commander is Capt. Russell (Paul Blackthorne), a rotter with a racist streak, who insults the local maharajah to his face and thinks nothing of whipping a Hindu upstart. Even his fellow officers think he's over the top. He administers "lagaan," which is the annual tax the farmers must pay to their maharajah, and he to the British.

It is a time of drought and hunger, and the farmers cannot pay.

A story of extraordinary circumstances thrust upon ordinary people. Adversity faced with fortitude and injustice with dignity. There is slowly awakening pride, the grit and determination of a people who have everything to lose. Faith and courage come face to face with arrogance and ruthlessness. And the human spirit triumphs.

Capt. Russell is obsessed by cricket, and believes it's a game that can never be mastered by Indians. Bhuvan says it is much like an ancient Indian game, and that Indians could excel at it. Russell makes Bhuvan a bet: The Brits and a village team will play a cricket match. If the Indians win, there will be no lagaan for three years. If the Brits win, lagaan will be tripled. The villagers think Bhuvan is insane, since a triple tax would destroy them, but he points out that since they cannot pay the current tax, they have nothing to lose.

Bhuvan assembles and starts to coach a local team. Elizabeth Russell, the evil captain's sister, believes her brother's deal is unfair, and secretly sneaks out to the village to provide pointers on cricket. Her closeness to Bhuvan disturbs Gauri (Gracy Singh), a local woman who has believed since childhood that she and Bhuvan are fated to marry. There's another coil of the plot with the two-faced Lakha (Yashpal Sharma), who wants Gauri for himself, and acts as a spy for Russell because he feels that if Bhuvan loses face, he'll have a better chance with her.