Jasmine, played by Cate Blanchett, arrives in San Francisco after escaping her former life in New York. She lands at her adopted sister's cramped apartment in a struggling neighborhood, where her presence raises eyebrows among her peers. A fellow passenger on the flight reports to her husband that Jasmine was talking to herself, reflecting her fragile state of mind. Her sister, Ginger, is stunned to discover that Jasmine traveled first class while being completely destitute.
In the depths of her despair, Jasmine reminisces about the lavish yet tumultuous life she once led with her husband, Hal, a wealthy businessman. Flashbacks reveal how Ginger and her working-class husband, Augie (played by Andrew Dice Clay), paid a visit to New York, an event marking their first trip to the city in years. During their stay, Jasmine spoiled them with a limousine ride and a stay at the Marriott, all to avoid time with them. When Ginger excitedly announces their lottery win of $200,000 and Augie's plan to start a construction business, Jasmine suggests that Hal help manage their investment. However, tensions rise when Ginger witnesses Hal kissing another woman.
The complexities deepen when it becomes evident that Hal has been unfaithful, leading to Ginger’s internal struggle over whether to inform Jasmine. Ultimately, she decides to protect her sister from heartbreak, although it is revealed later that Hal has embezzled funds from Ginger and Augie. Jasmine remains a source of resentment for Augie, who blames her for losing his chance at financial independence. The tragic fallout continues with Hal's eventual suicide following his imprisonment for fraud, while Ginger escapes an abusive marriage with Augie and begins dating a mechanic named Chili.
In her quest for a fresh start, Jasmine aspires to become an interior designer but lacks basic computer skills. She finds a job with a dentist, Dr. Flicker, only to face unwanted advances. Jasmine bravely fights off his harassment and decides to leave the job. Her luck seems to change after meeting Dwight, a wealthy widower and aspirant congressman. Meanwhile, Ginger is entangled in an affair with Al, whom she meets at the same party, as Jasmine’s comments influence her choices.
As Jasmine pretends her past was more palatable, claiming her deceased husband was a doctor, her deception threatens to unravel. Just as Dwight plans to propose, Augie confronts Jasmine, revealing her past to Dwight, which results in him ending their engagement. Devastated, Jasmine walks to Oakland to see her estranged stepson, Danny (played by Alden Ehrenreich), who has chosen to reject her. He painfully tells her that he wants to leave the past behind, including her.
Flashbacks unveil Jasmine's discovery of Hal's many infidelities as she confronts him in a fit of rage, ultimately leading to his downfall when she reports his fraudulent activities. Danny, hurt and embittered by his father's betrayal, holds Jasmine accountable for her actions. Returning to Ginger’s apartment, Jasmine feels out of place upon seeing her sister with Chili again. After a tense exchange, Jasmine fabricates a story about marrying Dwight and rushes out.
The film concludes poignantly with Jasmine alone on a park bench, lost in her thoughts and speaking to herself, epitomizing her profound loneliness and the existential crisis she faces.
