Saagar is the story of a peaceful little village by the sea where a tavern owner's daughter Mona stirs up a fierce storm of passion, romance and turbulence that engulfs the entire village. Mona, has grown up in the company of Raja who is very cheerful and jovial by nature. Raja has always been in love with Mona, but has never let Mona on to this fact or about his dreams of a future with her.

Not far from the village lives the haughty millionairess Kamladevi whose sole heir, her grandson Ravi (Rishi Kapoor) comes to live with her. On a memorable dawn, Ravi stumbles upon a venus like beauty arising from the sea, and time stands still.

Ravi mingles with the fishermen and becomes a good friend of Raja, and a well wisher of a village, much to Kamladevi's dislike. Ravi and Mona attain new heights of romance and ecstasy. Little does Raja know that Ravi, his friend, is also dreaming of the very same Mona which his only reason for living. Then fate takes a cruel turn.