In a small town in Oklahoma, during the mid-1960s, the social fabric is starkly divided between two teen gangs: the Greasers and the Socs. The Greasers are from the working-class and the outlying poorer neighborhoods, known for their long, greased hair, leather jackets, and rough manners. On the opposite end, the Socs hail from the wealthier parts of town, drive fancy cars, and exhibit a sense of arrogant entitlement. Despite their socioeconomic differences, both groups share a common penchant for group brawls and a desire to assert their dominance in the ongoing turf war. Tensions frequently run high, with fights breaking out over the smallest of confrontations and insults. The film focuses on one particular Greaser, 14-year-old Ponyboy Curtis, who navigates this precarious social landscape while seeking a sense of belonging and understanding in a world marked by violence and division.

Ponyboy and his two brothers, Sodapop and Darry, who are also Greasers, have formed a tight-knit group with their friends Johnny, Dallas, Two-Bit, and Steve. Despite tough exteriors, these young men share deep bonds of friendship, loyalty, and a sense of family with each other. Their unity is constantly tested by altercations with the Socs, particularly after Ponyboy and Johnny fatefully encounter a group of Socs at a local park one night. This chance meeting precipitates a chain of events that dramatically escalates the conflict between the gangs, leading to critical turning points in the lives of all involved, as they must confront the harsh realities of anger, revenge, and the consequences of their lifestyle.