Hedwig, a transgender punk rock singer from East Berlin, marries an American soldier to escape her repressive surroundings. To marry, Hedwig undergoes a botched sex-change operation that leaves her with an "angry inch." Soon after the marriage, she is abandoned in a Kansas trailer park where she struggles with her identity and dreams of becoming a famous musician. To cope with her circumstances, Hedwig forms a band called the Angry Inch, channeling her pain and frustration into powerful and emotionally charged rock music.

As Hedwig's band tours obscure venues across the country, she recounts her tumultuous past through songs and stories. She grapples with betrayal and lost love, particularly regarding her former protégée, Tommy, who has stolen her songs and achieved stardom. During these gigs, Hedwig confronts her complex feelings of abandonment and betrayal while continuing her search for wholeness and recognition. Each performance serves as a cathartic exploration of her journey, capturing both her heartache and indomitable spirit. Throughout this journey, Hedwig seeks not just fame but also a sense of completion in both her life and identity.