Ragnar has left his family farm and works as a taxi driver in Reykjavík in the early sixties. He's drawn to the beautiful but unhappy girl Gogo and hopes to build a better life with her. But she's a lost soul and their brief romance results in tragedy.

Set at the start of the twentieth century, the movie deals with the orphaned boy Álfgrímur, his adoptive grandparents, and the small, tolerant community of misfits and eccentrics they gather around them at Brekkukot, their cottage in Reykjavík. As Álfgrímur begins to encounter the minor politicians, businessmen and social-climbers of the growing town of Reykjavík he starts to question his future as a fisherman's grandson, and is increasingly fascinated by Garðar Hólm, the celebrated Icelandic "world singer" whose sporadic returns to Iceland encourage Álfgrímur to pursue his own personal goals of self-expression. He discovers the true value of his boyhood experiences only as he sets out on a path that will take him away from them forever.