In 1979, a man named Thomas, portrayed by Josh Lucas, arrives in the town of Dampier, Western Australia, late at night, after having delivered a statue of William Dampier. Upon entering the local pub, he notices a group of men in a tense situation, one of them wielding a gun. Fearing the worst, Thomas hastily enters the next room, only to find that the men are attempting to euthanize a sick dog named Red Dog. Struck by the gravity of the situation, Thomas and the men retreat to the bar for a drink.
The town's publican, Jack Collins, played by Noah Taylor, takes this opportunity to share the tale of Red Dog. The narration reveals that Red Dog first arrived in Dampier in 1971, where he quickly formed friendships with many of the Hamersley Iron employees who were working on a significant iron ore excavation. Through the miners' anecdotes, it becomes clear that while Red Dog was beloved by the entire community, he was without a true master.
The miners recount the story of an American bus driver named John Grant, played by John Batchelor, who becomes Red's beloved human companion. John eventually begins a romantic relationship with Nancy, portrayed by Rachael Taylor, a secretary at Hamersley Iron. As their bond deepens, John proposes to Nancy. Tragically, on the night of this momentous occasion, he instructs Red Dog to wait for him as he leaves for Nancy's caravan. However, the following morning, John suffers a fatal motorcycle accident after colliding with a kangaroo.
In the aftermath of John's death, Nancy and the other miners inadvertently neglect Red Dog, who patiently waits for John to return. Even after three days, he remains loyal, refusing to move from the spot where John had left him. It isn't until three weeks later that Red Dog embarks on a poignant journey in search of John, traversing through various locales including Hamersley Iron, local bars, and even far reaches from Perth to Darwin. There are whispers throughout the town that Red Dog might have ventured as far as Japan in his quest, but ultimately, grief compels him to return home to Dampier.
Upon his return, Red Dog finds Nancy at her caravan park. Unfortunately, the caretakers do not permit dogs on the premises and threaten to shoot him. Sensing the urgency of the situation, Nancy and John's friends rally together to confront the caravan park's staff. A conflict ensues involving the caretakers' cat, Red Cat, but the two eventually reach an understanding, marking the beginning of an unusual friendship.
Presently, the miner Jocko, played by Rohan Nichol, poses a thought-provoking question to the gathered townspeople, challenging the notion of erecting a statue of William Dampier, who he feels offers little value to the community. Instead, he proposes honoring someone who truly represents early Dampier—Red Dog. As celebrations unfold in honor of Red Dog, he quietly slips away unnoticed, prompting a town-wide search when they realize he is missing. Ultimately, the townsfolk find Red Dog lying peacefully in front of John's grave.
A year later, Thomas returns to Dampier, this time with a new puppy, a successor to Red Dog, offering hope and continuity. The town unveils a statue commemorating Red Dog, a lasting tribute to the beloved canine who united the community. This statue stands proudly to this day, symbolizing the enduring spirit of a dog who touched the hearts of many.