The residents of the neighbourhood go about their daily toil, most of them at market stalls, talking and even confronting each other (via the song "We are all Jews").

Rachel arrives at the shop of Janus (Yossi Gerber), an immigrant from Hungary, a cobbler and a resident of the housing estate, in order to bring her shoes for repair.

Janus, who is in love with Rachel, despite being many years older than her, gives her new shoes with which she goes outside and runs into Kazablan, who still insists that she say good morning, blocking her way.

Her father (Mr. Feldman) comes running to her defence, but Rachel is amused by the whole situation and greets Kazablan with a good morning blessing and he clears the way for her.

Mr. Feldman and the neighbors look at him with looks of hatred and contempt and he walks away alone and misses a sense of home and belonging (the song "There is a place").

The battered and bruised Kazablan consoles himself at Madame Rosa's night club, where his friends are (the song "Jaffa").

Rachel and her stepmother try to convince Mr. Feldman to join the table, leaving Kazablan alone in the room, and he notices the hidden box where the money collected from the neighbourhood residents was placed.

The meal goes well, even though this is the Moroccan Kazablan's first encounter with the dish gefilte fish (which he secretly passes to the cat).

During the meal, it is revealed that Kazablan is a war hero who received a medal for rescuing his wounded commander from the battlefield, which causes Mr. Feldman to see him differently.

While the two are travelling in Jerusalem, Janus arrives at Feldman's house, to try and convince him to tell Rachel to marry him and beg him to leave the neighbourhood together for a better place.

When Kazablan and Rachel return from Jerusalem, the police are waiting to arrest him for stealing the money, after it was discovered that the box in which it was kept was empty.

The investigating officer who arrives turns out to be Josh, Kazablan's commander in the army (Misha Ashrov), whose life he saved in battle.

In September 1954, it was staged as a play at the Cameri Theater, directed by Shmuel Bonim and starring Yosef Yadin and Haya Harareet.

In 1966, the play became a musical, adapted by them by Musinson and Joel Silberg added poems written by Amos Ettinger and Haim Hefer.

[7] The original actors from the stage production, who portrayed characters such as Kazablan, Marioma, and Moshiko, returned to reprise their roles in the film.