It's 1947 and mild-mannered banker Andy Dufresne (TIM ROBBINS) has just arrived at Shawshank prison to serve two life terms for the murder of his wife. He claims he's innocent, but as Ellis Boyd "Red" Redding (MORGAN FREEMAN) tells him, they're all "innocent" there, including others such as Heywood (WILLIAM SADLER) and lifelong inmate Brooks Hatlen (JAMES WHITMORE) who's been there since 1905 and serves as the sole librarian.
While Warden Samuel Norton (BOB GUNTON) may run the prison via his hard-nosed lead guard, Captain Hadley (CLANCY BROWN), Red's the one who can anybody most anything, for a price. And what Andy needs is defense from Bogs Diamond (MARK ROLSTON) and his "sisters" who routinely enjoy putting new cons in their place by repeatedly raping them.
But Andy must fend for himself, and as time passes and he becomes best friends with Red, he eventually figures out how to handle Bogs and the others. After a risky maneuver of offering Hadley financial advice, he becomes the warden's all-around assistant, eventually cooking the books as the years and then decades pass and new inmates, such as petty thief Tommy (GIL BELLOWS), come and go.
Seeing how Red is always turned down for parole, Andy realizes he must deal with the fact that he might not ever get out, a thought that makes him set out on a patient and steady course to obtain his freedom.