Plot
Usnavi de la Vega tells a group of children a story of Washington Heights. Ten years earlier, Usnavi is the owner of a bodega in the neighborhood. After chasing off street artist "Graffiti Pete", he introduces: Abuela Claudia, the neighborhood matriarch who raised him; Kevin Rosario, who runs a taxi company; Benny, Kevin's employee and Usnavi's best friend; the beauty salon ladies Daniela, Carla, and Cuca; Sonny, Usnavi's teenage cousin; and Vanessa, Usnavi's love interest ("In the Heights").
Alejandro, an attorney and family friend, informs Usnavi that his late father's business in the Dominican Republic, which he dreams of reviving, is for sale. Kevin's daughter Nina returns from Stanford University. After seeing Benny ("Benny's Dispatch"), she tells her father she cannot afford tuition, but he brushes her off, telling her not to worry ("Breathe").
Nina visits Daniela's salon, which is moving to the Bronx due to rising rents in Manhattan, where she reconnects with the ladies but reveals she has dropped out of Stanford ("No Me Diga"). Vanessa submits a rental application downtown, where she dreams of becoming a fashion designer, but is rejected ("It Won't Be Long Now"). She heads to the bodega, where Sonny asks her out for Usnavi.
Sonny learns a lottery ticket the bodega sold has won $96,000. At the public pool, everybody in the neighborhood fantasizes about what they would do with the money ("96,000"), while the local piragüero laments losing business to a Mister Softee truck ("Piragua"). Reminiscing about their childhood, Benny reassures Nina she is destined for greatness ("When You're Home"). Usnavi talks to Sonny's father about letting Sonny come with him to the Dominican Republic, but Sonny's father implies he and Sonny are undocumented immigrants and cannot leave.
Kevin reveals he has sold his business to pay for Nina's tuition, but she refuses the money, revealing the real reason she dropped out was the racism she experienced. Usnavi and Vanessa head to the salsa club for their date, but he is too nervous to dance with her. After multiple men dance with Vanessa, Usnavi tries to make her jealous by dancing with another woman ("The Club"). The power goes out, and Sonny and Graffiti Pete illuminate the neighborhood with fireworks. Vanessa and Usnavi argue, and she rejects him ("Blackout").
Usnavi and a few others regroup at Abuela Claudia's apartment. Abuela begins to struggle with the effects of the heat, and Usnavi helps her to bed. Watching the found family she helped bring together, she reminisces about her childhood in Cuba and coming to Nueva York, enduring hardships to be where she is today ("Paciencia y Fe"). She dies peacefully, and the neighborhood comes together to mourn ("Alabanza"). At a protest for DACA, Sonny learns that he cannot go to college as an undocumented immigrant. Nina resolves to return to Stanford to find a pathway in life for undocumented children.
Finding Vanessa's rental application in the trash, Usnavi asks Daniela to co-sign. Daniela is moving out but no-one can be bothered to show up and say goodbye. She is disappointed with the block's negativity (over the power outage and Abuela's death), so she rouses the neighborhood into a celebration ("Carnaval del Barrio"), as the power outage ends. Vanessa and Usnavi reconcile.
A month later, Nina is returning to Stanford. Benny promises to join her in Palo Alto, and they kiss ("When the Sun Goes Down"). As Usnavi prepares to leave for the Dominican Republic, he discovers that Abuela held the winning lottery ticket, and has left it to him. Vanessa arrives with champagne, having learned about Usnavi's help with her new lease. She suggests Usnavi stay but he refuses, and she kisses him, lamenting that she was too late in realizing her feelings for him ("Champagne").
Usnavi gives Alejandro the lottery ticket to use for Sonny's DACA fees. The next morning, Vanessa takes Usnavi to the bodega and shows him a fashion line she created the previous night inspired by Graffiti Pete's work. Seeing Pete's murals celebrating Abuela, Usnavi decides to stay. The story returns to the present day, revealing that Usnavi is telling his story in the remodeled bodega to his and Vanessa's daughter, Iris. Everyone sings and dances in the street, while Usnavi expresses his elation at being in Washington Heights, where he has always belonged ("Finale"). In a post-credit scene, the Mister Softee truck has broken down, while the piragüero has success with his business ("Piragua Reprise").