Can I host multiple domains in a single hosting plan?

Yes, You can setup another domain name on your existing hosting plan.

Assume that you purchased hosting plan for domain xyz.com. Now you have another domain abc.com for which you want to have website but don't want to
purchase another hosting plan to minimize costs.

You can setup addional domain abc.com in the xyz.com control panel under cpanel "Addon domains" option.

Internally addon domain abc.com points to a subdirectory in the main domain xyz.com/abc. These addon domains operate like regular domains and you can
access from browser as http://www.abc.com but all the files for this website will be stored and retrived from xyz.com/abc directory.

This way you can actually have several different web sites hosted in a single hosting account.

Note: You will not get separate control panel (cpanel )

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