City of Angels takes place glamorous 1940s Hollywood. While trying to maintain his artistic integrity and marrage, a young novelist, Stine, is attempting to write a screen play for fast-talking Hollywood producer, Buddy Fidler. As he creates the story about a private detective, Stone, the characters of Stine's imagination come to life on stage. Beautiful socialite Alaura Kingsley hires Stone to find her missing step-daughter. The step-daughter ends up showing up naked in Stone's bed. Soon, Stone is beat up by a bunch of hoodlums hired to get him off the Kingsley case. In the end, though, Stine confronts his sell-out, alter-ego Stone and the manipulative Buddy and quits the project. After regaining his dignity, he is able to regain the love of his wife and all ends well.