In a dystopian, bureaucratic, and retro-futuristic world, Sam Lowry is a low-level government employee toiling away in obscurity within a monolithic and uncaring administrative system. His life is a monotonous routine overshadowed by the constant fear of terrorists and an omnipresent state. Although he often escapes into daydreams where he's a winged superhero rescuing a damsel in distress, Sam is jolted into action when a clerical error caused by a squashed fly results in the wrongful arrest and death of an innocent man. The mistake leads to a chain reaction that pulls Sam into a Kafkaesque nightmare as he tries to rectify the situation.

Sam's pursuit of justice leads him to Jill Layton, a truck driver who resembles the woman from his dreams. Mistaken for a terrorist, she becomes the center of an investigation that Sam cannot ignore. As he begins to develop feelings for Jill, he finds himself entangled in a web of red tape and arbitrary rules. His quest for truth exposes him to the dangers of an all-powerful state, pushing him deeper into conflict with the very system he's a part of. As Sam continues his struggle against the impersonal, indifferent, and often illogical bureaucracy, his reality blurs, bringing his fantasy world and waking life uncomfortably close together.