Vienna in the early eighties: After a suicide attempt, Tina, who comes from a middle-class family, is hospitalized in a psychiatric ward. There she gets to know Gerhard, an apprentice plumber, who also wanted to do away with himself. He comes from a working class family. They fall for each other. A modern love story which is set inside the real life circumstances of the closing of the alternative Youth Center "Gassergasse" in Vienna.

Herbert lives a rather simple life, left to his own devices. He works as a projectionist in a shabby Viennese movie theater and lives alone with his red nameless cat in the free caretaker's apartment of a somewhat run-down apartment building. Now and then he visits his mother in a nursing home, meets with an old friend of his father, or comes to meetings of a savings club. Saving money is pretty much the center of his life because he has a dream. He wants to emigrate to the U.S. to buy his own movie theater and to reunite with his long-lost father. But when Rita, a young student, moves into the apartment building things in his life are changed completely.

Chris, a young man from the country, dreams of a big career as an escape-artist. He wants to become famous like his idol, Harry Houdini. He meets Mischa, an expert in the art of living, who feels himself called upon to support Chris in attaining fame and an international career. Chris is very much attracted to Nada. Mischa's sister wants to break away from the Yugoslav workers' milieu. A spectacular performance is planned by Mischa and his friends to draw the medias' attention to Chris. Tied up in his strait-jacket, Chris wants to jump into the Danube and free himself under water. But neither newspaper journalists nor the TV turn up. Nevertheless Chris jumps into the water and frees himself. He wins Nada's love and restores his self-confidence. Malambo is a comedy, which portrays the dream world of an endearing community of friends, who are building 'castles of air' for themselves, in search for a better life.

Lily, a stunning photograph model, suddenly notices that hair is growing on her face and escalating to a real "man's beard". Her lover, Richard, who has just returned from a prolonged business trip cannot help her. On the contrary, she is so exasperated that she runs away into the night of the big city where she has her first experiences as a "man".