The story takes place in the Spanish section of Harlem. Carlito Brigante (Al Pacino) returns from prison with a firm decision to finally quit the drug trade and start a new life. But he needs some money to get started, so he takes a job as the boss of a friend's club. Over time, he discovers that his surroundings are far more treacherous and ruthless than he imagined. This includes not only his rivals, but also his former friends. When his lawyer (Sean Penn), who got him out of prison, asks for his help, Carlito can't refuse, even at the risk of not fulfilling his dream of leaving with his love Gail and starting over...