Selma, a Czech immigrant on the verge of blindness, struggles to make ends meet for herself and her son, who has inherited the same genetic disorder and will suffer the same fate without an expensive operation. When life gets too difficult, Selma learns to cope through her love of musicals, escaping life's troubles - even if just for a moment - by dreaming up little numbers to the rhythmic beats of her surroundings.
A barren soundstage is stylishly utilized to create a minimalist small-town setting in which a mysterious woman named Grace hides from the criminals who pursue her. The town is two-faced and offers to harbor Grace as long as she can make it worth their effort, so Grace works hard under the employ of various townspeople to win their favor. Tensions flare, however, and Grace's status as a helpless outsider provokes vicious contempt and abuse from the citizens of Dogville.