Ali takes his little sister Zahra's shoes to the shoemaker to be repaired, but loses them on the way home. The siblings decide to keep the predicament a secret from their parents, knowing that there is no money to buy a replacement pair and fearing that they will be punished. They devise a scheme to share Ali's sneakers: Zahra will wear them to school in the morning and hand them off to Ali at midday so he can attend afternoon classes. This uncomfortable arrangement leads to one adventure after another as they attempt to hide the plan from their parents and teachers, attend to their schoolwork and errands, and acquire a new pair of shoes for Zahra. Zahra sees the shoes on a schoolmate's feet, and follows her home, but the two soon become friends.
Ali enters a high-profile children's footrace in the hope of receiving the third prize of a new pair of sneakers. He accidentally places first and wins another prize instead. The film ends with Zahra finding out that she will not get a new pair of shoes, but there is a quick shot of their father's bicycle at the end of the movie that shows what appears to be the red shoes Zahra had been focusing on earlier and another pair of white sneakers, presumably for Ali, whose old sneakers were torn from so much use. The film ends with the final shot showing blisters on Ali's feet. Some versions include an epilogue revealing that Ali eventually achieves the larger-scale success of having a racing career.
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