An armed gang chases after an escaped chicken in a favela called the City of God. The chicken stops between the gang and a young man nicknamed Rocket.
In the 1960s, three impoverished, amateur thieves known as the “Tender Trio” – Shaggy, Clipper, and Rocket’s older brother, Goose – rob business owners and share the money with the community who, in turn, hide them from the police.
Li’l Dice, a young boy, convinces them to hold up a motel and rob its occupants. The gang resolves not to kill anyone and tells Li’l Dice to be a lookout. Instead, Li’l Dice guns down the motel occupants after falsely warning the trio that the police are coming. The massacre attracts so much police attention that the trio is forced to split up.
In the 1970s, Rocket has joined a group of young hippies. He enjoys photography and likes one girl, Angélica, but his attempt to get close to her is ruined by a gang of petty criminal kids known as “The Runts”. Li’l Dice, now known as “Li’l Zé,” has established a drug empire, eliminating all competition.
Benny decides to leave the drug trade and begins dating Angélica. During Benny’s farewell party, a tragic event sets off a chain of violence that leads to a full-blown gang war between Carrot and Li’l Zé. Rocket finds himself caught in the middle as the conflict escalates.
As the war continues, Rocket captures crucial photos that expose the corruption and violence in the City of God. In a final showdown, the police capture Li’l Zé and Carrot, but corruption allows Li’l Zé to escape with a loss of his money. The Runts take matters into their own hands to seek revenge.