A political thriller with action film elements, it follows the lead man alone character "Smith" (Neill) as New Zealand plunges into a police state as a fascist government institutes martial law after industrial disputes flare into violence.

[4][2] Following the break-up of his marriage caused by his wife's affair with another man named Bullen, Smith arranges to live on the Coromandel Peninsula on an island owned by a Māori tribe.

Smith's idyllic life is shattered when a bomb explodes in a nearby town, and police arrive on his island to arrest him and search for illegal weapons.

Jesperson reveals that the government regard Smith as a key leader of the guerillas and offers expulsion from New Zealand in return for a confession, or alternatively trial by a military tribunal with a likely death sentence.

When Neill's stunt double ran from the van, an off-duty police officer tackled him, mistaking the stuntman for a real criminal attempting to escape custody.

"[5] The film also received a positive review from Janet Maslin in The New York Times: "Roger Donaldson's sharp, suspenseful direction does wonders for the material.

What it lacks in originality, Sleeping Dogs makes up in intensity and conviction...Mr. Neill remains appealing and believable, even when the film takes its most improbable turns.