In the late 1940s, after serving six months in a federal narcotics hospital, Frankie Maginek returned to Chicago's South Side , which was largely populated by Polish-Americans. Frank's favorite bar, Anteke's Targmore Tavern, the residents are delighted to meet Frank, especially his good friend "The Dog Lost" Sparrow (Arnold Stein). While Frankie's former drug purveyor, "Nifty" Louis Fomorowski (Darren McGavin), offers Frankie a free "fix," Frankie refuses and swears by the sparrow that he has kicked the narcotics Pins forever and intends to be the drummer of a big name band.
Frankie proudly shows off the drums the hospital gave him, and after Paspello finds him some new clothes, he goes to his room with his wheelchair-bound wife Zosh (Eleanor Parker). A neurotic Zohi, determined to get Frankie with her by any means necessary, has been manipulating him for three years, using his guilt for causing an accident that hurt Frankie while drunk driving. Zohi doubts his plans to become a musician and urges him to start playing poker again with Zero Schwiivka (Robert Strauss). Frankie's consistent approach to things has earned him the reputation of "The Man with the Golden Arm" across the city, but Frankie is determined to improve his life so he doesn't ever think of drugs again.
Frankie calls Harry Lane (Will Wright), a music manager, who is introduced to him by his doctor at the Narcotics Hospital, and makes an appointment to see him. After Sparrow returned with a "borrowed" set of clothes that Frankie wore, they stopped for a drink at the Anteke Tavern, where they met Schwiivka. Frankie announces he intends to walk away from the deal, and a furious Schwiivka informs local assault police "cousin" Kwoka (Harold Tommy Hart) that Frankie and Sparrow stole a set at the store Suit. Kwoka takes the pair to Police Chief "Head of Records" Bednar (Emile Meyer), who wearily ignores Frankie's protest that he has a job interview, insisting that he Lock him up. Then, Schwiivka offered to bail out Frankie and Sparrow if Frankie came back to trade for him, and Frankie was forced to take it. Disturbed by an incarcerated addict's painful plea for redress, Frankie returns home, and Zohi is delighted that he's back at trading cards.
That night, Louie mocks Frankie's handshake for disturbing the dealer, and he leaves to visit the Safari Club, a nearby strip bar where Frankie's ex-lover Molly Nowotny works as a B-girl. Although Molly and Frankie are still in love, Frankie's guilt for causing Zohi to be paralyzed keeps them apart. Frankie tries to tell Molly that she should leave her current boyfriend, mean, alcoholic John, but Molly says she needs someone to avoid her ingrained loneliness. Shortly after, Frankie was interviewed by Lane, who promised to call him to audition for a band, but warned that Lane would not sponsor him again if he went backwards even once. Although Frankie is happy, Zohi nags him that he is unrealistic in his pursuit of a better life. A week passed without Ryan saying a word, and Frankie fell into depression until one afternoon, when Frankie met Louis, succumbed to temptation, and accompanied Louis to his apartment to fix it, Frankie took the bait again. Later, after another fight with Zoe, Frankie rushes to Anteke's house, where he meets Molly, who encourages him to call Ryan, telling him that Ryan may have lost his phone number. Molly was proven right, and Lane arranged for Frankie to audition for the Rogers Jr. next Monday. Frankie begs Molly to let him practice drumming in her room, as the malicious Zohi has banned him from playing drums at their place. Although she was reluctant to encourage Frankie to create hope for the future for both of them, Molly agreed. Frankie boasted that he had left Schwyfka to join the musicians' union, and he assured Molly that he would rehab again and that they would be together after he made some money to send Zohi to the clinic.
