Kya Love Story Hai is the story of a carefree and wayward youth, Arjun (Tusshar Kapoor), who experiences love-at-first-sight with Kaajal (Ayesha Takia). It isn't a typical meet-cute situation - he follows her for some time before breaking the ice. For Kaajal, Arjun is a mere acquaintance but the latter is in love with her and afraid of conveying his feelings.
A situation arises when Kaajal comes across a letter, which Arjun has written for the girl he loves, but she doesn't know to whom he is referring. Arjun deliberately asks her how she would reciprocate his love if she were the girl he was in love with. Kaajal's reply leaves Arjun self-introspecting, making him mysteriously disappear from the scene.
In the mean time, a successful and snooty entrepreneur meets Kaajal. Following some heated verbal scuffles with her, he concludes that she would make for an appropriate life-partner because she was a stabilizing influence and kept him mellow. When Arjun returns to South Africa, during an astonishingly coincidental encounter, he finds Kaajal engaged to the entrepreneur!
Destiny has entangled three hearts but who will emerge victorious? Who will make the grand gesture?