Andy Kaufman (JIM CARREY) is a 1970s comedian best described as unconventional. Although his "performances" are often met with blank stares or unbelieving disapproval, a few of them are hits. It's the latter that draws the attention of George Shapiro (DANNY DeVITO), a seasoned talent agent who gets the performer an appearance on TV's "Saturday Night Live."
That eventually leads to a recurring spot on the TV show, "Taxi," but before Kaufman will sign the contract, he wants Shapiro and the network to agree to a series of demands, one of which involves the occasional casting of Tony Clifton on the show. Not knowing who this is, Shapiro checks out one of his acts and his shocked at how the puffy and abusive lounge singer treats the audience. That is, until he learns that he's really Kaufman in disguise, a character that he and writer Bob Zmuda (PAUL GIAMATTI) created as a gag to push the audience's limits.
As Shapiro gets to know Kaufman as best as anyone can, he learns that the performer, who doesn't claim to be a comedian, enjoys and lives for shocking his audience. Thus, he's not that surprised when Kaufman creates a bizarre TV special - much to the chagrin of Maynard Smith (VINCENT SCHIAVELLI), a harried network executive, or when he suddenly starts putting women down and wrestling with them in the ring.
It's there that he meets the eventual love of his life, Lynne Margulies (COURTNEY LOVE), as well as his arch nemesis, professional wrestler Jerry Lawler (JERRY LAWLER) who challenges Kaufman in and out of the ring. Yet, when Kaufman announces that he's dying of lung cancer, nobody, including his own parents, Stanley (GERRY BECKER) and Janice (LESLIE LYLES), knows whether that's just another of his outrageous acts.
With few buying into his illness and his public popularity diminishing due to his continued outrageous behavior, Kaufman must then decide how to live out the rest of his now shortened life and whether to continue trying to shock people or not.