Mood: The mood of the video appears to be light-hearted and playful, with a dash of humor. The theme seems to revolve around friendship, camaraderie, and possibly a touch of madness or craziness, as hinted by the title 'Hum Pagal Nahi Hai' which translates to 'We are not mad'. The overall emotion exuded is carefree and entertaining.

Environment: The setting seems to be an outdoor location, possibly a college or university campus, given the presence of a large building in the background and individuals dressed in what appears to be uniform attire. The presence of a gazebo and trees adds to the outdoor setting, suggesting a casual and relaxed environment.