Four friends, freshly graduated from college, share a home in Houston, Texas. Among them, Troy Dyer, a coffeehouse guitarist, and Lelaina Pierce, an aspiring filmmaker, share an attraction that has remained unspoken except for one night of drunken intimacy years prior.
Currently, Troy finds himself adrift, having been let go from multiple minimum-wage jobs, the last of which ended when he impulsively stole a candy bar from his employer. On the other hand, Lelaina, who was the valedictorian of her university, dreams of making documentaries but must initially settle for a production assistant position under a demanding and rude television host.
One fateful day, Lelaina encounters Michael Grates when her lit cigarette accidentally causes him to crash into her car. Their unexpected meeting blossoms into a relationship; Michael works for an MTV-style channel known as In Your Face. He sees the potential in Lelaina's documentary, which prompts him to pursue getting it aired on his network.
Meanwhile, Vickie, Lelaina's roommate, navigates a tumultuous sexual life, embroiling herself in numerous one-night stands. This reckless behavior presents her with the serious concern of contracting HIV after an ex-fling tests positive for the virus. Initially a sales associate at The Gap, she is later promoted to manager, finding satisfaction in her new role. Simultaneously, their friend Sammy Gray, who identifies as gay, chooses to remain celibate. His choice is not rooted in a fear of AIDS but rather concerns about coming out to his conservative parents.
Lelaina's impulsive act of defiance against her demanding boss ultimately costs her the job, creating friction among the friends. However, good news follows as Vickie's HIV test returns negative, and Sammy finds the courage to come out to his parents and even ventures into dating.
The plot thickens when Lelaina's romance with Michael falls apart. After he assists her in selling her documentary, he allows the network to alter it into a visually flashy montage that undermines her artistic integrity. In a pivotal moment, Lelaina and Troy share a heartfelt conversation that culminates in them sleeping together and finally acknowledging their feelings. Yet, Troy withdraws the next morning, leading to a chaotic confrontation with Lelaina before he departs town.
After the death of Troy's father, he experiences a moment of rediscovery about his life choices, motivating him to pursue a relationship with Lelaina. Upon his return from Chicago after the funeral, they reconcile and clear the air. However, the movie takes a comedic twist during the credits with an absurd moment where two characters, "Elaina" and "Roy," comically bicker about their relationship, serving as parodies of Lelaina and Troy. The reveal that Michael is the creator of this fictional drama highlights his attempt to capitalize on their relationship as material for a new show on his network.
