Handlung

In Washington Heights, a sympathetic New York bodega owner saves every penny every day as he imagines and sings about a better life.

Lights up on Washington Heights...The scent of a cafecito caliente hangs in the air just outside of the 181st Street subway stop, where a kaleidoscope of dreams rallies this vibrant and tight-knit community. At the intersection of it all is the likable, magnetic bodega owner Usnavi (Anthony Ramos), who saves every penny from his daily grind as he hopes, imagines and sings about a better life.

Dreaming of saving up enough money to return to his island and restore his late father's business in the Dominican Republic, bright-eyed Usnavi runs a bodega in the lively neighbourhood of Washington Heights, Manhattan, selling the best coffee in town. Until then, Usnavi vies for beautiful beautician Vanessa's attention, as his childhood friends, Benny and Nina, nurture dreams of their own, intent on helping the immigrant community of Washington Heights. But, these streets are made of music, and as the temperature rises, nothing can stand in the way of youthful, sun-kissed optimism. After all, there is no place like home.—Nick Riganas

The film opens on a beach, as Usnavi (Ramos) tells a group of children the story of Washington Heights. He tells them about the concept of a sueñito, a little dream that everyone has. He begins the story in the middle of the summer in Washington Heights, introducing the main characters of the film: Abuela Claudia (Merediz), the aged matriarch of the neighborhood who took him in and raised him, Kevin Rosario (Smits), who runs the taxi company, the salon ladies Daniela (Rubin-Vega), Carla (Beatriz) and Cuca (Polanco), his younger cousin Sonny (Diaz), who he employs, Benny (Hawkins), who is employed by Kevin at the taxi company, and Vanessa (Barrera), who works at the salon and is Usnavi's love interest, as they each pass by his neighborhood bodega for their morning coffee before they carry on with their day ("In The Heights").

Alejandro, who runs the local law firm, stops by the bodega to inform Usnavi that his father's old business in the Dominican Republic has been put back up for sale and can be purchased, something Usnavi has always dreamed of buying and reviving; his sueñito. Meanwhile, Nina Rosario (Grace), Kevin's daughter, returns to the neighborhood from her first year at Stanford University. After a quick reunion with Benny ("Benny's Dispatch"), Usnavi, Sonny and Abuela, she goes to find her father, while dreading telling him of her plans to drop out, due to a combination of loneliness and financial troubles, in doing so letting her neighborhood down ("Breathe"). She meets her father and tells him that she would be unable to pay tuition fees in time, but he brushes her off, telling her not to worry.

Elsewhere in the neighborhood, Daniela, Carla, Vanessa and Cuca work at the neighborhood salon, which will be moving soon to the Bronx due to rising rent. Nina arrives at the salon for a treatment, and they happily oblige, all the while gossiping about her and Vanessa's love interests ("No Me Diga"). The attention soon turns to her studies however, and she is forced to reveal that she has dropped out of university, and leaves. Vanessa, on her lunch break, goes to submit a rental application to pursue her sueñito of moving downtown to become a fashion designer ("It Won't Be Long Now"). However, she is unable to provide a good credit check and her application is rejected. Disappointed, she heads back to the neighborhood and drops by Usnavi's bodega, where Sonny manages to ask her out on the weekend, on Usnavi's behalf.

Due to the summer heat, the entire neighborhood closes up shop early to head to the local pool. Just as Usnavi, Sonny, and Benny prepare to leave, Sonny receives a call that one of the lottery tickets the bodega has sold has won $96,000. They and the rest of the neighborhood begin to fantasize about achieving their own sueñitos with the money if they were the ones who won ("96,000"). Meanwhile, Mr. Piraguero (Miranda) laments how Mister Softee (Jackson) is stealing his business ("Piragua").

That weekend, Benny and Nina meet at the park to hang out, as they reminisce about their childhoods spent in the neighborhood. She expresses her doubts and her fears about her self-worth to Benny, but he reassures her that she is destined for greatness ("When You're Home"). Afterwards, Benny walks in on a meeting between Kevin and the dry-cleaner next door, who has tried to buy over the lot where Kevin's business is. Meanwhile, Usnavi goes to talk to Sonny's father about letting him go with him to the Dominican Republic, but Sonny's father informs him that he and Sonny are undocumented immigrants.

That evening, Usnavi, Sonny, Abuela, and the salon ladies gather at Kevin and Nina's house for a dinner party. Later on, Benny arrives and questions Kevin about his earlier meeting with the dry cleaner, forcing Kevin to reveal his news: he called Stanford, and has sold the business to pay for Nina's tuition. Outraged that he went behind her back, Nina refuses the money and storms out, followed by Benny, as Kevin tells the rest of the guests to leave. Usnavi and Vanessa head to the club for their date, along with Benny and Nina. At the club, Usnavi is overly nervous and aloof, and Vanessa dances with other men to make him jealous. Usnavi finds his own partner and tries to make her jealous in turn ("The Club"). Suddenly, the power goes out in the neighborhood, and in the ensuing chaos, Vanessa and Usnavi get separated. Sonny and Graffiti Pete light up fireworks to illuminate the neighborhood, while Benny and Kevin return to the taxi company to direct cars and taxis. Vanessa and Usnavi find each other and argue about their date; Vanessa angrily rejects him and they both go home ("Blackout").

Nina and the salon ladies go to Usnavi's apartment, where they play bingo and revel in the fireworks. Abuela, lying in bed, reminisces about her childhood in Cuba, living in poverty, and how she and her mother came to New York, enduring hardships to be where she is today, as she passes away, her heart unable to take the summer heat ("Paciencia Y Fe"). Usnavi discovers her unresponsive and calls the emergency hotline, but it is too late. The entire neighborhood comes together to mourn her passing and sing her praises ("Alabanza").

At a neighborhood protest for DACA, Nina learns that Sonny cannot go to college as he is an undocumented immigrant. She resolves to go back to university to find a way for undocumented children like Sonny to find a pathway in life. She informs Kevin of her decision, and he happily tells her that she has surpassed him, and encourages her to pursue her goals, telling her to disregard anything negative people say about her.

While clearing out the trash, Usnavi discovers Vanessa's rental application that she had thrown away. He visits Daniela as she is packing up and preparing to move her business, asking her to co-sign on Vanessa's application. Afterwards, disappointed with the block's negative attitudes over the blackout and Abuela's passing, Daniela rouses them into a celebration of their shared Latin culture, as the entire neighborhood joins in ("Carnaval Del Barrio"). Vanessa and Sonny express reservations, but Usnavi convinces them to let go of their worries and celebrate in the moment, as the blackout finally ends.

A month later, Nina finishes packing to return to Stanford, and she and Benny agree to pursue a long-distance relationship. Benny reaffirms his faith in her, and promises to make his way over to California to be with her, as they finally kiss ("When The Sun Goes Down"). At the same time, as Usnavi finishes preparing to leave for the Dominican Republic the next day, he discovers that Abuela held the winning lottery ticket, and has passed it on to him. Just at that moment, Vanessa shows up and flirts with him, having found out that Usnavi convinced Daniela to co-sign on her lease, and bought him a bottle of champagne to thank him. She quietly suggests that Usnavi should stay, but he refuses. Distraught, she finally kisses him, and laments that she was too late in realizing her feelings for him ("Champagne").

Afterwards, Usnavi visits Alejandro and Sonny, giving him the winning ticket and telling him to use it for Sonny's legal fees as he applies for documentation. The next morning, Usnavi walks around the neighborhood one last time, and runs into Vanessa. She takes him to his old bodega and shows him a new fashion line she created the previous night, having been inspired by Graffiti Pete's paint rags. Graffiti Pete has painted a mural across the wall of the beach where Usnavi's father's old business used to be, and another one celebrating Abuela Claudia and her famous motto, "Paciencia y fe" (Patience and Faith). Usnavi has an epiphany and tasks Sonny and Pete with telling the neighborhood of his decision to stay. The story returns to the present day, where the beach where Usnavi is telling his story is revealed to be the new shop that he and Vanessa built together, he is revealed to have married Vanessa, and one of the children is revealed to be Usnavi's daughter.

The film ends with present-day Usnavi, Vanessa and their daughter dancing with the rest of the neighborhood, and past Usnavi accepting the neighborhood as his true home ("Finale").

In a post-credits scene, Piraguero is celebrating the overflow of customers now that the Mister Softee truck broke down, and gives the Mister Softee driver a piragua. (Piragua [Reprise])