Set in New York during the early 1930s, unemployment is high and Prohibition is in and America is plunged into the Great Depression. Annie is a 10 year old girl at the Hudson St Orphanage, run by Miss Hannigan - a horrible gin-soaked child-hating drunk. The girls' lives are made hard by Miss Hannigan who sees herself stuck in a miserable job that she hates. One day Annie decides to run away by hiding in one of the laundry carts, to be collected by Mr Bundles - the laundry man. During her short time outside, Annie befriends a dog who she calls Sandy, from being tormented by a gang of rough street urchins. Annie is then picked up by a policeman and taken back to the orphanage, when Miss Hannigan discovers Sandy hidden under some bed sheets, she locks them both in the cupboard. Outside the arrival of an expensive car draws a lot of attention, a beautiful young woman, smartly dressed rings the orphanage doorbell, she tells Miss Hannigan her name is Grace Farrell and is the private secretary to Oliver Warbucks - a munitions billionaire; and is there to choose an orphan to live at the mansion. Using subtle techniques Annie makes sure Grace chooses her to go with her to spend a week at Warbcuks' home. At the Warbucks' mansion Annie makes a good impression with the household staff, but Warbucks seems a tougher nut to crack. At the orphanage Miss Hannigan's brother Rooster and his new girlfriend Lily call to borrow some money, but when she refuses Rooster takes it from her bag. Later at the mansion Annie can't sleep and when she goes downstairs to catch Warbucks working and Sandy manages to catch someone attempting to blow up the mansion. As the days pass Warbucks realizes he is growing fond of Annie, and the evening before she has to go back to the orphanage, he takes her to Radio City Music Hall. The next morning Grace suggests to Warbucks he adopts Annie although initially he refuses; he sees how much Grace wants to have Annie to stay and agrees to adopt her. At the orphanage, Miss Hannigan flirts with Warbucks when he asks her to sign the papers, Later back at Warbucks' home, he tells Annie he has adopted her and bought her a new locket, however Annie tells him she appreciates it but has parents who will claim her one day with the other half of the locket she wears, so Warbucks promises to help her. Warbucks goes to the radio to appeal for Annie's parents, with the promise of a huge monetary reward. The next day a huge crowd of people turn up at the house, Warbucks takes Annie to meet President & Mrs Roosevelt and when they return an excited Annie can't wait to meet her parents, but they aren't there; Annie is upset but Warbucks comforts her. At the orphanage a couple arrive claiming to be Annie's parents but reveal themselves to be Rooster and Lily. Miss Hannigan tells them Annie's parents died, and a few little scraps in a little box is the other half of the locket. The orphans hear their plan and make their escape to warn Annie but they end up locked in a cupboard. Rooster and Lily head to Warbucks' home and manage to fool everybody with the same story, Annie is somewhat disappointed her parents have turned up and as they leave Miss Hannigan steps into the car and Annie realizes the whole thing is a scam. Meanwhile the girls have escaped from the locked cupboard and make their way to Warbucks' home, when they get there they tell him of the plan to kidnap Annie and kill her. Meanwhile Annie asks they stop the car so she can go to the toilet, she grabs the cheque and tears it, an angry Rooster says he's going to kill her. Warbucks and Grace are in a car and the 2 bodyguards in a copter. Annie is chased to a large bridge, she climbs up it chased by Rooster although Miss Hannigan tries her best to stop him. Annie is saved when Punjab climbs out of the copter and rescues her and he kicks Rooster down the bridge, Warbucks and Grace are happily reunited with Annie. The next day Warbucks officially adopts Annie and throws a big party, the orphanage girls are there - presumably they have been adopted too by others, and Miss Hannigan now a reformed woman.