One morning, Rishi Kanva hears a baby's cry near the Malini river and finds a abandoned girl child protected by birds. He takes her in as his daughter, naming her Shakuntala, and she grows up among the forest animals. Many years later, King Dushyant of Hastinapur visits the hermitage while hunting and becomes enamored by Shakuntala's beauty. They marry in a Gadhava ceremony, but Dushyant must leave for his kingdom, promising to return and take her to the palace.
While Shakuntala is lost in thoughts of Dushyant, the short-tempered Rishi Durbasha arrives seeking alms. Shakuntala is too preoccupied to notice him, and he curses her that the person she is thinking about will forget her. Shakuntala's friends apologize on her behalf, and the rishi relents, saying the curse will be lifted if she can show him a token of recognition. Shakuntala, now pregnant, leaves for Dushyant's palace as directed by Rishi Kanva.
On her way, Shakuntala bathes in the Sachi river and unknowingly loses the ring Dushyant had given her, which is swallowed by a fish. When she arrives at court, Dushyant, under the influence of the curse, fails to recognize her and rejects her claims of being his wife. Shakuntala is devastated and taken away to the heavens by her mother Menaka. Later, a fisherman finds the ring inside a fish and takes it to the king, which instantly restores Dushyant's memory and causes him great remorse.
Dushyant then journeys to the hermitage of Rishi Kanva to seek forgiveness and is reunited with Shakuntala and their young son Bharat. He apologizes for the public humiliation and takes them back to the palace with him. Shakuntala then becomes the Maharani of Hastinapur, and Bharat is crowned as the crown prince. The story concludes with their happy ending after years of separation and misunderstanding.