Freddy, a Viennese Jew who emigrated to New York after Hitler's invasion, and Adler, a left-wing intellectual originally from Berlin, return to Austria in 1944 as soldiers in the U.S. Army. Freddy falls in love with the daughter of a Nazi, and Adler attempts to go over to the Communist Zone. But with the advent of the Cold War and continuing anti-semitism, the idealism of both characters is shattered as they find themselves surrounded by cynicism, opportunism, and universal self-deception.

Stingo, a young writer, moves to Brooklyn in 1947 to begin work on his first novel. As he becomes friendly with Sophie and her lover Nathan, he learns that she is a Holocaust survivor. Flashbacks reveal her harrowing story, from pre-war prosperity to Auschwitz. In the present, Sophie and Nathan's relationship increasingly unravels as Stingo grows closer to Sophie and Nathan's fragile mental state becomes ever more apparent.