David Merrill, a prominent director in the 1950s Hollywood scene, finds himself in a tumultuous environment upon returning from a film scout abroad. The escalating McCarthyism and the Red Scare have instigated significant chaos among his peers in the film industry. As the treachery unfolds, his friend Larry Nolan is compelled to name names. Under the pressure of the FBI and the Congressional Oversight Committee, Nolan identifies various individuals, including Merrill, as potential supporters of communism. Despite their minimal connections to the actual Communist Party, they face overwhelming coercion to distance themselves from leftist ideologies.
Hollywood executives, such as mogul Darryl Zanuck, urge directors and staff to renounce any affiliations with communism and to participate in dubious congressional hearings, often requiring them to name colleagues as communist agents. Amidst this darkened climate, Merrill is confronted by Felix Graff, a legal consultant in Hollywood. He is coerced into cooperating with the FBI by naming four individuals, including his childhood friend and screenwriter Bunny Baxter, as alleged communists. The ultimatum is stark: comply or face ostracism from the industry.
Choosing integrity, Merrill finds himself blacklisted and stripped of his assets, leading him to struggle financially and emotionally. He faces challenges in providing for his ex-wife Ruth and their child as he seeks to make his way in New York City. While he initially receives a warm welcome from former colleagues, an eerie realization dawns—his ties to Hollywood are too frail, and he is gradually abandoned by the very individuals he once trusted.
With nowhere left to turn, Merrill returns to Los Angeles, hoping to revive his relationship with Ruth. Despite her having moved on and sold her home to restart her teaching career, their bond strengthens as he becomes more involved in his son's life. Meanwhile, Dorothy Nolan, Larry’s troubled estranged wife, suffers a severe mental breakdown after losing custody of her child due to refusing to cooperate with the FBI. Her despair culminates in a tragic decision that ends her life.
In a twist of fate, Merrill receives an unexpected call from a B-movie director seeking his expertise to salvage a failing Western project. Just as success seems attainable, the director decides to exclude him, once again stalling Merrill's hopes. Additionally, Bunny strives to navigate his own perilous situation, having previously attended leftist rallies without disclosing this to authorities. Threatened with imprisonment for perjury, Bunny turns to Merrill, pleading to take the fall to save himself, only to face rejection from Ruth.
Amidst the rising tensions, Merrill decides to reach out to Zanuck's attorney, Graff, who persuades him that redemption hinges upon compliance during an upcoming congressional hearing. Ultimately, however, during the proceedings, under intense scrutiny from the committee, he upholds his refusal to implicate others, leading to a heated confrontation. Consequently, he is cited for contempt of Congress, resulting in severe repercussions for his peers. As he exits, Bunny steps forward to face the committee, mirroring Merrill’s stance by likewise refusing to betray his colleagues.