Based on the true life experiences of poet Jimmy Santiago Baca, the film focuses on half-brothers Paco and Cruz, and their bi-racial cousin Miklo. It opens in 1972, as the three are members of an East L.A. gang known as the "Vatos Locos", and the story focuses on how a violent crime and the influence of narcotics alter their lives. Miklo is incarcerated and sent to San Quentin, where he makes a "home" for himself. Cruz becomes an exceptional artist, but a heroin addiction overcomes him with tragic results. Paco becomes a cop and an enemy to his "carnal", Miklo.

Gabriel Caine has just been released from prison when he sets up a bet with a business man. The business man owns most of a boxing-mad town called Diggstown. The bet is that Gabe can find a boxer that will knock out 10 Diggstown men, in a boxing ring, within 24 hours. "Honey" Roy Palmer is that man - although at 48, many say he is too old.