To escape her terrible marriage to an unemployed jerk (
Danny Aiello), unassertive waitress Cecilia (
Mia Farrow) frequents the movie theater to watch Hollywood movies. She particularly loves "The Purple Rose of Cairo," and sees it repeatedly -- so much that eventually the romantic lead character Tom Baxter (
Jeff Daniels) notices Cecilia. He falls in love with her, and steps out of the movie, leaving his baffled castmates unable to move the plot forward. Cecilia tours Tom around the real world, where things aren't always fair and sex isn't an abstract, unseen concept. Meanwhile, Tom's defection panics movie-industry executives, who fear other fictional characters will start coming to life and roaming around. They summon the actor who portrayed Tom, Gil Shepard (Daniels again), to find and bring his unruly creation under control. Gil also winds up romancing Cecilia, urging her to leave her husband for him.