The film flashes back and forth between the 1970s and 1980s and centers on the relationship between Fielding Pierce, a young Coast Guard officer with political ambitions, and idealistic Roman Catholic Sarah Williams, who is drawn to programs designed to better the lives of the underprivileged and has mixed feelings about his career goals.

In the opening scene, Fielding sees a television news program reporting Sarah's death in a Minneapolis car bombing following a church-organized excursion to Chile to feed the poor and organize resistance to the oppressive Pinochet dictatorship.

It opened in Brazil one week later and Austria in February and was shown at the Santa Barbara International Film Festival in early March before going into limited release in North America later that month.

[5] Entertainment Weekly gave the film a "C" rating and Lisa Schwarzbaum wrote, "the arbitrariness of the lovers' passion and the somber hysteria with which the novelist and filmmaker treat every issue, whether it's South American dictatorship or female armpit hair, is enough to anesthetize the living".

One of the most powerful romances of recent years, it is as generous as they come ... an intelligent tale told with go-for-broke passion ... Crudup and Connelly are splendid together ... Waking the Dead gives us acting at its biggest and most beautiful".

[8] In his review for the Los Angeles Times, Kevin Thomas wrote, "The seeming presence of Sarah creates a special challenge for Gordon and his stars, and that Waking the Dead deals with it so imaginatively, makes the film all the richer and provocative an experience".