The grouchy Makhichoos, whoe hates Diwali, is digging furiously in the Dholakpur forest searching for a demon.  Soon the demon emerges from the roots of a tree.  Both the evil witch and Makhichoos plan to build a new kingdom on the eve of Diwali and teach Bheem a lesson.  While Bheem and his friends are preparing for the celebrations, Chhota Hanuman also comes there to be a part of the festival.  But something worse happens; Makhichoos and the evil witch kidnap princess Indumati.  Will Bheem and Hanuman together rescue Indumati and triumph over the evil.