Plot

Three Italian-American brothers, living in the slums of 1940's New York City, try to help each other with one's wrestling career using one brother's promotional skills and another brother's con-artist tactics to thwart a sleazy manager.

It's 1946 in Hell's Kitchen in New York City. Cosmo Carboni, the eldest of the three Carboni brothers, is lamenting what he sees as them not living up to their potential. Big talking Cosmo hustles and panhandles for money. Brooding Lenny Carboni, an injured veteran whose sullen attitude stems from his time in the war, is an undertaker. And youngest Victor Carboni, the simple muscle-man who wouldn't hurt a fly unless he's annoyed, is an iceman. Victor looks to Lenny and his Chinese-American girlfriend Susan Chow as his voices of reason. After Victor holds his own against wrestler Frankie the Thumper in an arm wrestling match, Frankie who is seen as the strongest man in the neighborhood, and after seeing the lucrative wrestling matches - which are more like street fights without rules - at the underground nightclub called Paradise Alley, Cosmo gets it into his head that wrestling may be Victor's calling and a way for them all to get out of Hell's Kitchen for good. The brothers would act as trainer and manager. Lenny, doing it only to ensure Victor's safety, and Victor, who is rechristened "Kid Salami", ultimately agree. But instead of bonding the brothers closer together, the wrestling life and their relationship to a taxi dancer named Annie threatens to tear them apart as their priorities start to diverge. And a wrestling match with Frankie, who, with his sadistic manager, Stitch Malone, treats it as a grudge match, may threaten Victor's life altogether.—Huggo

In 1946, in the Hell's Kitchen neighborhood of New York City, after panhandling and pretending to be blind, Cosmo Carboni (Sylvester Stallone) is picked up in a truck by his younger brother, Victor (Lee Canalito), an ice deliveryman. On the way to visit their older brother, Lenny (Armand Assante), an injured World War II veteran who works as an embalmer, Cosmo stops to flirt with Annie O'Sherlock (Anne Archer) and arranges to see her later at the dance hall where she works as a dime-a-dance girl. That night, when Sticky (Jeff Wald), the dance hall proprietor, chides her for being rude to a customer, Annie retorts that she is getting over a broken heart.

Meanwhile, at a bar, Cosmo complains to his brothers that the Carbonis should be more successful. When the bar owner, gangster Stitch Mahon (Kevin Conway), and his crew come in, Cosmo notices they carry a monkey that belonged to a recently-deceased neighborhood street performer. Cosmo is certain he can make money with the animal and, despite Lenny's disapproval, arranges an arm wrestling match between his brother Victor and Franky the Thumper (Terry Funk), Stitch's henchman. Cosmo bets $100 against Stitch's monkey that Victor will win the match. When it looks like Franky will best Victor, Lenny whispers words of encouragement in his brother's ear and Victor wins the monkey for Cosmo. Afterwards, Victor and his girlfriend discuss their dream of getting a houseboat in New Jersey, though Victor believes he will not have enough money saved for several years.

The next day, Cosmo fails to make any money performing on the street with the monkey. When Bunchie (Joyce Ingalls), a beautiful blonde, stops by, Cosmo promises to see her later. That night, as he dances with Annie at the ballroom, she exchanges a meaningful glance with Lenny, her former boyfriend. Cosmo leaves to visit Bunchie, whom he has been meeting for three years. Bunchie feels she, not Annie, is the one who really understands him. Cosmo scoffs that because Bunchie is a prostitute, she cannot grasp his desire for a real relationship.

Later that evening, Cosmo takes Lenny to a private club called Paradise Alley which is owned and managed by a slick con artist known only as 'Burp' (Joe Spinell) who also works as the announcer and master of ceremonies. Cosmo and Lenny learn that anyone who can go one round with a wrestler named Big Glory (Frank McRae) will win $100. Cosmo convinces Victor to wrestle Big Glory. After Cosmo introduces him as "Kid Salami," Victor steps into the ring, beats Big Glory and wins the prize money. After the bout, Lenny argues that it is wrong for Cosmo to take advantage of Victor. Cosmo reminds his older brother that Lenny once had brains and ambition but after injuring his leg in the war, he now has nothing. Cosmo is determined to do whatever necessary to get out of the Hell's Kitchen district.

Lenny goes to Sticky's Ballroom to see Annie and apologizes for not contacting her but did not want to be pitied by her. Annie argues that she never cared about his injury and she does not want him back because she is worried that he will leave her again. As Lenny walks Annie home, he tries to convince her they should resume their relationship. Annie relents and kisses him. Later that night, Cosmo stops by Annie's home and sees Lenny in bed with her. In the morning, after Lenny leaves, Cosmo accuses Annie of leading him on. She denies the accusation but admits she has always loved Lenny and is happy to be back with him.

Cosmo visits Bunchie, who urges him to forget Annie and focus on his relationship with her because she loves him. Later, Cosmo tries to persuade Victor to wrestle full time, pointing out that his brother can make money much faster as a wrestler. The two go to Paradise Alley where Cosmo hopes Big Glory can convince Victor to wrestle. They find him living in the basement where he talks to them about his plans and prospects. The wrestler advises Victor to get a manager he can trust. After the brothers leave, Victor asks Lenny for advice. Lenny does not like the idea of Victor wrestling but agrees to help him if Victor decides to do it. Victor realizes he will never make enough money in the ice business to buy his houseboat and consents to try wrestling professionally.

Over the next several days, Cosmo trains Victor, and Lenny agrees to handle the business. Cosmo expresses his sense of betrayal that Lenny has reunited with Annie and they agree that they are now just business partners instead of brothers. When Lenny tries to set up a wrestling match at Paradise Alley, Burp informs him that first Victor has to make a name for himself and inspire spectators to bet large sums on him by fighting established wrestlers. Lenny assures the man his brother can win fifty fights by Christmas. As Victor starts winning matches and money, Cosmo worries that he will get injured, but Lenny pushes Victor to continue wrestling. Meanwhile, Annie frets that Lenny is allowing the wrestling business to take him away from her.

On Christmas Eve, Victor asks Lenny how much money they have, but Lenny only urges Victor to trust him. Later, Lenny visits Annie briefly, claiming he has to leave right away for business. She accuses him of cheating and they end their romance. Elsewhere, Cosmo exchanges Christmas gifts with Bunchie, then leaves for Paradise Alley. He visits Big Glory, who is badly beaten after fighting Franky the Thumper. The two get drunk and drive to Stitch's bar where Glory pulls down his pants and "moons" Stitch and Franky. Cosmo and Glory then drive to the Hudson River where Glory admits he has no money and knows his career is over. After the fun night that Cosmo has shown him, Glory finally feels happy and is ready to jump in the river. When Cosmo tries to talk him out of committing suicide, the wrestler urges him to think carefully about the high cost of wrestling, then jumps into the river.

In the morning, Cosmo reunites with his brothers and, mindful of Big Glory's fate, urges Victor to quit wrestling. In response, Lenny promises to set up a match with Franky that, if he wins, will make it possible for Victor to achieve his dreams. Cosmo cautions Victor against doing it, but Victor wants money for the houseboat. Victor and Cosmo and arrange with Stitch a match between Victor and Franky, with the Carbonis betting the $9,000 they have made on Victor to win.

As the fight begins that night at Paradise Alley, Lenny urges Victor to win but Cosmo lets Victor know he can still back out. Victor thinks Cosmo should be proud, since he was the one who pushed him into wrestling. Throughout the match, Lenny and Cosmo squabble on the sidelines. Between rounds, Victor asks his brothers to stop arguing. After 22 rounds, Victor crumples to the mat and Stitch pressures the referee to call the match for Franky. However, when Stitch's men hassle Lenny and Cosmo, Victor revives and pulls them off his brothers. Fighting resumes and Victor is declared the eventual winner. However, he admits to Lenny and Cosmo he was planning to throw the match and lose their money because he liked it better when it was just the three of them.