Chili Palmer (John Travolta) is a loan shark in from Miami. His boss Ray "Bones" Barboni (Dennis Farina) sends him to collect a debt from a man believed to be dead, Leo DeVoe (David Paymer). After learning that Leo actually faked his own death to collect insurance, Chilli tracks him to Los Angeles and gets the money, but fails to inform Ray. In Los Angeles, Chili visits a movie director Harry Zimm (Gene Hackman) to collect a casino debt from him too. He breaks into the house Harry shares with his actress girlfriend, Karen (Rene Russo). Chili, who loves films, gives Harry an idea for a movie, based on his own life, as it unfolds. Harry’s shady associate Bo Catlett (Delroy Lindo) and Chili both want to become movie producers, and need Harry to do it. Chili also becomes attracted to Karen. Chili pitches his movie idea to famous actor Martin Weir (Danny DeVito), who loves it. However, there’s still the problem of the money, and Harry calls Ray Bones in Miami and asks him to come out and invest in motion pictures. The scene is set for all the characters to meet and race madly towards the resolution.