Annie (Aileen Quinn) is an orphan who lives in the orphanage under the direction of the cruel, alcoholic Miss Hannigan (Carol Burnett). Annie has a locket given to her by her parents, so she runs away to find them only to be caught and returned. Upon her return Grace Farrell (Anne Reinking), secretary to the wealthy Daddy Warbucks (Albert Finney) chooses her to go stay with Daddy Warbucks. After the trial visit, Daddy Warbucks decides to adopt Annie. To make her happy, he offers a $50,000 reward for information about her real parents. Miss Hannigan, in cahoots with her crooked brother, Rooster (Tim Curry) and his girlfriend, Lily (Bernadette Peters), claims Annie and demands the reward. After forcing Annie to go with her 'real parents' the news reaches Daddy Warbucks that Annie's real parents died, and he knows the people who took her are frauds and up to no good. Daddy Warbucks and company goes all out to find Annie. Annie, who has realized that Miss Hannigan is part of the plot, goes through many scary times. Finally Punjab (Geoffrey Holder), Daddy Warbuck’s right hand man, snatches Annie from a very precarious situation.