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The film revolves around Billu Barber, a kind-hearted and innocent barber who lives a mundane life in a small town. He has a crush on a local girl, Sandali (Neha Mehta), but lacks the courage to express his feelings. Billu's life takes a dramatic turn when his childhood friend, Bunty (Ayesha Takia), returns to the town after completing her education. As they reconnect, Billu finds himself drawn to Bunty's charming personality and confidence.

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The film revolves around the life of Billu (played by Akshaye Khanna), a humble barber who becomes an unlikely hero. With his razor-sharp wit and charm, Billu navigates love, friendship, and rivalry, making the audience laugh and cry. The chemistry between the lead actors, coupled with the supporting cast, makes the film a delightful watch.

"Billu Barber" contributed to the evolution of Indian comedy films, showcasing a more nuanced and subtle approach to humor. The movie's success paved the way for other comedies that experimented with different genres and styles. The film's influence can be seen in later comedies, such as "Hera Pheri" (2000) and "Munna Bhai M.B.B.S." (2003), which also blended humor with heart.