The film details the deteriorating state of an impoverished Gary neighborhood terrorized by a street gang called the Rebels.
When the gang murders a local boy, it prompts the emergence of several individuals who grew up in the neighborhood: the original members of the Rebels.
After he leaves, Spyro, the current co-leader of the Rebels (opposite Damien) is under the impression that Kenny's skills are something more than "something he picked up."
He enters a phone booth to make the call but is subsequently shot and killed by Kayo in a drive-by shooting.
The attack on Marvin's life prompts his son, pro football coach and ex-Rebel John Bookman, to return to the impoverished Gary neighborhood to find Bobby.
While talking, Laurie implores Jake to reconsider seeking vengeance upon his son's murderers, expressing her disdain by stating that he always wishes to resolve such issues by fighting, which "only makes things worse".
At the party for the Rebels, John and Jake drive Spyro and Damien's car into Diablo territory and shoot at them to set up a broken truce.
John and Jake receive help from their former gang mates in Laurie, Slick and Bubba, while Kenny's friend Marcus also joins them in their fight.
In another area, the Rebels are attempting to escape the battle, but they are stopped by a group of community members, armed with bats and other improvised weapons.
Eventually, Spyro and Damien fear they may lose the fight, and escape to the old steel mill, with Jake and John set on catching them.
Eventually, Jake and John reach the steel mill, each taking on Spyro and Damien separately as Diablo members watch on.