The movie’s setting was in the Second World War wherein an 8-year-old boy named Bruno, together with his family move from Berlin to the countryside, after his father, Ralf, is promoted to commandant of a Nazi concentration camp. Bruno is limited to the front grounds of his family's new home and craves friendship and adventure. He disobeys his parents by sneaking out and exploring through the woods to an remote, unguarded corner of the concentration camp he thought was a playgorund, where he befriends Shmuel, a Jewish boy his own age. They meet in the same spot every day. Bruno starts bringing Shmuel food and playing games with him through the barbed wire fence. Shmuel gradually reveals to Bruno some of the truth of what is behind the fence, telling him that he and his family have been imprisoned and forced to wear the “striped pajamas” because they are Jews. On hearing this, Bruno remembers what he has been taught about Jewish people but realizes that Shmuel is not evil and continues their friendship.
One day, Bruno sees Shmuel cleaning glasses in their house and stops to ask about what he is doing. Shmuel tells him that he was called in because the family needed someone with small hands and tiny fingers to clean the glasses. Bruno mentions that he and Shmuel aren't supposed to be friends but then gives Shmuel some pastries. Kotler, a soldier of Bruno’s father, comes in, asking Shmuel why he is eating. Shmuel says that Bruno gave him the cake, but Bruno denies it, saying he has never met the boy to get out of trouble. Kotler tells Shmuel that they will “have a little talk” about what happens to Jews who steal food. Bruno goes to his room and starts regretting what he has said. He goes back to apologize, but it is too late and Shmuel is gone. For the next few days, Bruno goes to the concentration camp, but Shmuel is nowhere to be seen. Finally, one day Shmuel is back sitting where he sat before, but now his eye is cut