Aging gangster Benjamin "Lefty" Ruggiero is introduced to a jewel thief named Donnie Brasco. Donnie impresses Lefty by threatening a diamond dealer whom Donnie suspects of selling Lefty a fake ring.
Lefty teaches Donnie the rules of the Mafia and introduces him to several "made men", including Dominick "Sonny Black" Napolitano, Nicky Santora, and caporegime Alphonse “Sonny Red” Indelicato, to whom Lefty owes money and who is disliked by Sonny Black.
Donnie Brasco is revealed to be Joseph D. Pistone, an undercover FBI agent. His wife hates his job, and the couple have heated arguments throughout the film. At home, Pistone's behavior increasingly becomes like that of the criminal he pretends to be.