Tony Manero is a 19-year-old Italian American from the Bay Ridge neighborhood of Brooklyn, New York. He lives with his family in a crowded home and works a dead-end job at a local paint store. Disenchanted with the monotony of his life and the constant conflicts with his family, Tony seeks escape and a sense of identity through the vibrant local disco scene. Each Saturday night, he becomes a king on the dance floor at the 2001 Odyssey discotheque, where he is admired for his prowess in dancing, especially his skilled moves while performing the disco. Tony's charismatic presence and dance talent make him a local celebrity, providing a much-needed contrast to his otherwise unremarkable daily existence.

Tony's life takes a turn when he meets Stephanie Mangano, a confident and ambitious dancer who dreams of a life beyond Brooklyn. Recognizing a kindred spirit with aspirations that mirror his own desire for change, Tony teams up with Stephanie for an upcoming dance competition that promises to reward the winners with a cash prize and a shot at something greater. Their relationship is complicated, however, by Tony's lingering ties to his old life, which include his streetwise friends, his stagnant family dynamic, and his attraction to the hedonistic nightlife that both elevates and entraps him. As the competition approaches, Tony is forced to confront the disparity between his dreams and the harsh realities of his world.