A young girl breaks up from her petit bourgeoisie home and her piano lessons to lead an entirely new life, as one of the personnel at an institution for juvenile delinquents in a remote part of Northern Iceland. It is the 1970s and the young people in charge of the place are heavily into flower power, sitar music and solving problems by frank talk sessions with the delinquents. However, the hippies, who themselves despise authority, soon find their own authority under attack by the rebellious youngsters, especially after the arrival of a mysterious young girl. Then a violent incident occurs that will have a decisively detrimental effect on relations at the institution.

In an attempt to fix his financial problems, Erik recruits his brother, Atli, to help him import a shipment of cocaine into Iceland. Erik thinks he's got things all figured out, until the young Polish “mule” they've hired is unable to pass the drugs through her system.