In a mystical and dark city filled with humans, fairies and other creatures, a police detective investigates a series of gruesome murders leveled against the fairy population. During his investigation, the detective becomes the prime suspect and must find the real killer to clear his name.

New York, 1929, a war rages between two rival gangsters, Fat Sam and Dandy Dan. Dan is in possession of a new and deadly weapon, the dreaded "splurge gun". As the custard pies fly, Bugsy Malone, an all-round nice guy, falls for Blousey Brown, a singer at Fat Sam's speakeasy. His designs on her are disrupted by the seductive songstress Tallulah who wants Bugsy for herself.