Berlin in the 1960s. Olaf and Horst are two young metalworkers, who provoke their older colleagues with critiques of the antiquated equipment and lack of materials... not to mention their love of leather jackets and motorbikes. Olaf and Horst begin to be targeted in the house newsletter, and the generational conflict escalates.

To justify their invasion of Poland at the start of WWII, Nazi high command hatches a secret plan: six Polish men from an SS training camp are sent on a special mission to the town of Gleiwitz, to fake a Polish raid on Germany. The ‘provoked’ Germans will thus launch a ‘counterattack’ on Poland.

The film is a love story about a seventeen-year-old East German saleswoman named Uschi (Bürger) and an unemployed auto mechanic named Hans (Thein) from West Berlin. She leaves her familial home and moves into West Berlin, drawn by the brightness of the high streets and the economic progress in the West German side of the city. She initially dates Lord (Uwe-Jens Pape), a wealthy, leather-jacket-wearing ladies man, highly conscious of his own self-image and style. He is strongly influenced by American movie heartthrobs of the times. Meanwhile, she meets Hans, an auto mechanic who, also image-conscious and aspiring to be trendy, is living in relative poverty and is considered less physically attractive than Lord. Although initially mesmerized by the glamour of West Berlin and Lord, she falls in love with Hans, deciding that looks and image are not important. She eventually returns home to her parents along with Hans, who finds a job in the Eastern side of the city.

Berlin - Ecke Schönhauser depicts the youth of 1950s East Berlin as an aimless bunch, lacking goals, with no motivation to better themselves or to look beyond the thrill of the next dance or meaningless act of delinquency. Here the youth of the DDR have much in common with their American counterparts in films like Rebel Without a Cause. Unlike the spoiled LA kids choking on Eisenhower-era consumption, however, Berlin teenagers Dieter, Kohle, Karl-Heinz, Angelika and their friends live in poverty amid the ruins of WW II. Parents are missing, killed in the war. As the city rebuilds, piles of rubble disgorge live bombs. While the East struggles to repair the damage of the last war West Germany rearms, this time with nuclear weapons. The kids are all right, but they survive in a pretty grim environment. To the youths, adults belong to an alien race who cling to hypocritical bourgeois values. There are exceptions – a sympathetic police officer takes an interest in the plight of the young people, promising apprenticeships to the out-of-work kids. But Karl-Heinz has other plans: pre-Berlin Wall travel between the city's Capitalist and Communist zones is easy, and Karl-Heinz exchanges East Marks for West and sells stolen IDs, eager to make enough money to enable flight to the West. One of his crimes goes suddenly wrong, and Karl-Heinz is on the run. Kohle and Dieter try to call in a debt, tragedy ensues, and the two flee West, leaving behind Angelika, pregnant with Dieter's child. Kohle and Dieter find West Germans suspicious, interested in espionage and not exactly welcoming. To gain asylum the young men must claim they suffered political persecution, a charge the film shows is patently false. The two friends decide to part ways, Kohle excited about heading to a new life farther west while Dieter is drawn back to the DDR life he knows. As the film closes some important lessons have been learned: The BRD is a locus for crime of all sorts, and it draws criminals out of the East, a statement made explicit in the film's closing lines. Socialism faces challenges; it is not perfect, but it wears the human face of loving well-intentioned men and women.