Outside the Australian town of Jindabyne, local man Stuart Kane is on a fishing trip with friends when they discover the body of a murdered girl.

In Israel's Central Prison, the security officer is corrupt, supplying drugs and stirring the hatred between Jewish and Arab prisoners to his advantage. Uri, in for 12 years for armed robbery, and Issan, in for 50 years for PLO violence, command the respect of their cells. When the Arabs are framed for the murder of a Jewish prisoner and a young inmate commits suicide rather than lie about what happened, Uri and Issan form an unlikely partnership, leading the security block on a strike. Prison officials try to break it. In the background are Uri's daughter and Issan's wife, women of beauty and passion who embody the distance from inside a cell to the outside.

Clara, a polish born Jew, living in Tel Aviv of the 1970's, has her ideas about how people should behave, and runs everybody's life accordingly: her husband, her sisters, their husbands, their children, her brother who lives in London (probably because it was the only way to get away from her...). Whenever something "improper" does happen, Clara's way of handling it is simply to shove it under the carpet and ignore it completely, as if it never happened. 3 basic rules, are, of course: 1. Never marry some one "under" your class (Or the class you think you are). 2. Never become pregnant out of wedlock and 3. No Abortions. As one may expect, everything crumbles when her niece gives her no option, but to break at least one of those rules