Arturo Bandini is a struggling writer living in a residential hotel in Bunker Hill, a rundown section of Downtown Los Angeles. The checks that his poor parents send him are just enough to pay for oranges. The only short story he wrote that was ever published, "The Little Dog Laughed", does not impress anyone in his boarding house except for one 14-year-old girl. He uses a copy of this story to get the attention of Camilla Lopez, a waitress in the Columbia Buffet for which he initially feels a strong dislike.
After their first meeting Bandini falls in love with Lopez, who is herself in love with co-worker Sam. Sam also wants to make it as a writer and seeks Bandini's help. He despises Camilla and tells Bandini that he shouldn't treat her so well if he wants to win her over. Bandini struggles with poverty, his Catholic guilt, and with his love for a withering Camilla. Bandini takes his distance, working hard on his first novel. When he is almost finished Camilla knocks on his door.