An inventor (VINCENT PRICE) who lived alone in a castle high on a hill, decided to create a young man and gave him everything expected in such a design, except for hands, as he died before he could put those on.
The young man, called Edward (JOHNNY DEPP) lived alone for years, until an Avon saleswoman named Peg (DIANNE WIEST) comes up to the castle to try to make a sale, and encounters him. She decides to take him home to suburbia, amidst a cluster of nosy neighbors, all whom express interest in this person vastly different from themselves in so many ways, particularly that he has scissors for hands.
Peg's husband Bill (ALAN ARKIN) is amazed at Edward's skill in trimming bushes, which become dinosaurs and other pieces at the whims of the neighbors who want him for various other tasks, such as dog grooming and eventually hair styling. He triggers a desire within the residents of the neighborhood to do things they haven't done for years, as it is with Joyce (KATHY BAKER) who wants to open up a beauty salon, but also wants to use Edward for other things.
Meanwhile, Peg's daughter, Kim (WINONA RYDER), meets Edward, who's quite taken with her, though she has a boyfriend in the form of the malicious Jim (ANTHONY MICHAEL HALL), who wants to use Edward to rob his father's recreational room so he can get money from the merchandise stored in there. After that act, the residents begin to think less of Edward, even though what happened was not his doing.