The beautiful fugitive Grace arrives in the isolated township of Dogville. With some encouragement from Tom, the self-appointed town spokesman, the little community agrees to hide her and in return, Grace agrees to work for them.
The story continues from the point where Grace left Dogville in von Trier's previous film. We follow her and her father as they come to Manderlay, a plantation in Alabama where they witness the horrors and injustice of slavery, which compels Grace to intervene.
In groundbreaking style it mixes real news reports with actors portraying friends, family, cops, killers and other Laramie residents in their own words.