Ghost Dog (FOREST WHITAKER) is a solitary contract killer who's pledged his loyalty to Louie (JOHN TORMEY), a smalltime mobster who saved his life many years earlier. Louie works for Ray Vargo (HENRY SILVA), the head of a local crime family, and takes orders from the family's under-boss, Sonny Valerio (CLIFF GORMAN).
It seems that Sonny has ordered a hit on Handsome Frank (RICHARD PORTNOW), a fellow mobster who's been seeing Ray's daughter, Louise Vargo (TRICIA VESSEY). Receiving his instructions via his trusted carrier pigeon, Ghost Dog successfully completes his mission, but didn't realize that Louise would be there to witness the hit. As a result, Ray orders that the hit man be eliminated.
Unaware of the contract now on his life, Ghost Dog goes about his daily activities of following the precepts of the 18th century warrior text, Hagakure: The Way of the Samurai. He also spends time in the local park with Raymond (ISAACH DE BANKOLÉ), a French speaking ice cream vendor who's his "best friend" despite neither understanding the other's language, and befriends a young girl, Pearline (CAMILLE WINBUSH), who shares a strong literary interest with the contract killer who's fashioned his life as a samurai.
Eventually learning of Vargo's order to have him rubbed out, Ghost Dog consults the teachings and philosophy of the Hagakure as he prepares to battle Ray, Sonny and the rest of the crime family that wants him dead.