Gospel Hill tells the intersecting story of two men in the fictional South Carolina town of Julia. Danny Glover plays John Malcolm, the son of a slain civil rights activist. Jack Herrod (Tom Bower) is the former sheriff who never got to the bottom of the murder. Their paths begin to cross when a development corporation comes to town with plans to raze Julia's historic Gospel Hill.

The story takes place in alternative America where the blacks are members of social elite, and whites are inhabitants of inner city ghettos. Louis Pinnock is a white worker in a chocolate factory, loving husband and father of two children. While delivering a package for black CEO Thaddeus Thomas, he is mistaken for a voyeur and, as a result, loses his job, gets beaten by black cops and his family gets evicted from their home. Desperate Pinnock takes a gun and kidnaps Thomas, demanding justice.

Cynthia Wood, a 17-year-old, light-skinned black girl, tries to pass off as white after getting hired of a wealthy movie magnate Mr. Langley who has family problems with his spoiled wife and his promiscuous teenage daughter and son.

The Black middle class, torn between white goals and Black needs, are examined by producers William Greaves and William Branch in a 90-minute NET Journal documentary.

Eve Mason, a white-passing black woman, moves to a remote cottage she inherited from her late father. She makes the acquaintance of her neighbor, a dashing black settler named Hugh Van Allen, and quickly falls for him. Trouble brews as the local cadre of racist hucksters want the valuable land Van Allen lives on, and will do anything to take it from him.