Quoyle (KEVIN SPACEY) is a quiet and introspective typesetter for the Poughkeepsie News who's never quite gotten over growing up at the hands of his overbearing father, especially concerning his tactic of throwing him off a dock as a young boy and telling him to swim.
One day, and after having a spat with her latest lover, a young tart, Petal (CATE BLANCHETT), literally walks into Quoyle's life. One thing quickly leads to another and nine months later their daughter Bunny is born. Yet, while Petal calls Quoyle's place home and Bunny her daughter, she spends little time there with them.
Soon, many years have passed by, Bunny (KAITLYN, LAUREN and ALYSSA GAINER) is six-years-old, and Quoyle is hit with a double whammy. Not only have his parents committed suicide, but Petal has also died in a car crash with her latest fling. The one saving grace for him is that his estranged aunt, Agnis Hamm (JUDI DENCH), has arrived upon hearing of her older brother's death. She eventually convinces Quoyle that the best thing for him and Bunny is to move back to Newfoundland and the small town where she grew up and start life anew.
In the rugged and dreary coastal village, Quoyle finds work at the local newspaper, The Gammy Bird, run by fisherman Jack Buggit (SCOTT GLENN). Working with Beaufield Nutbeem (RHYS IFANS), the foreign news reporter, Billy Pretty (GORDON PINSENT), the home news page editor, and Tert Card (PETE POSTLETHWAITE), the managing editor, Quoyle suddenly finds himself working as a reporter covering the shipping news as well as the town's auto accidents, real or fabricated.
As he tries to get used to that, he meets Wavey Prowse (JULIANNE MOORE), a single mother who's raising her mentally slow child, Henry (WILL McALLISTER), and runs the local daycare that Bunny attends. With her being a widow, the two share a common bond that forges a friendship as well as tenuous and uneasy romantic longings between them.
With Jack's estranged son, Dennis (JASON BEHR), helping repair Agnis' isolated childhood home where she, Bunny and Quoyle now live, the novice reporter tries to fit in while dealing with all sorts of happenings and occurrences in his new home.