Corporal Rolf Steiner is a veteran soldier of the Wehrmacht on the Eastern Front of World War II. During a successful raid on an enemy mortar position, his reconnaissance platoon captures a Russian boy soldier. As the platoon returns to friendly lines, Captain Stransky arrives to take command of Steiner’s battalion. The regiment’s commander, Colonel Brandt, wonders why Stransky would ask to be transferred to the Kuban bridgehead from more comfortable duties in occupied France. Stransky proudly tells Brandt and the regimental adjutant, Captain Kiesel, that he applied for transfer to front-line duty in Russia so that he can win the Iron Cross.

Stransky meets Steiner as he returns from the patrol and orders the prisoner shot. Steiner refuses and Corporal Schnurrbart takes the boy off into hiding. Steiner reports to Stransky shortly after, where he is informed of his promotion to senior sergeant. Following the meeting Stransky discerns that his adjutant, Lieutenant Triebig, is a closet homosexual which is a death penalty offence in the German Army.

The platoon celebrates the birthday of their leader, Lieutenant Meyer. Steiner takes the young Russian to the forward positions to release him, where he is accidentally killed by advancing Soviet troops in a major attack. The Germans are forced to defend their positions. Stransky is overcome by fear in his bunker while Meyer is killed leading a successful counterattack. Steiner is wounded and sent to a military hospital.

After his hospital stay, characterized by flashbacks and a romantic liaison with a nurse, played by Senta Berger, Steiner is offered a home leave but decides instead to return to his men. There he learns Stransky has been nominated for an Iron Cross for the counterattack Meyer had led. Stransky’s award requires two witnesses as confirmation. He blackmails Triebig and attempts to persuade Steiner to corroborate his claim with promises of preferential treatment after the war. Brandt questions Steiner in the hope that he will expose Stransky’s lies, but Steiner only states that he hates all officers, even those as “enlightened” as Brandt and Kiesel, and requests a few days to ponder his answer.

When his battalion is ordered to retreat, Stransky does not notify Steiner’s platoon. Making their way back through now-enemy territory, the men capture an all-female Russian detachment. While Steiner is busy, Zoll, a despised Nazi Party member, takes one of the women into the barn to rape her. She bites his genitals and he kills her. Meanwhile, young Dietz, left to guard the rest of the women alone, is distracted and killed as well. Disgusted, Steiner locks Zoll up with the vengeful Russian women, taking their uniforms to use as a disguise.

As the men near the German lines, they radio ahead to avoid friendly fire. Stransky suggests to Triebig that Steiner and his men be “mistaken” for Russians. Triebig orders his men to shoot the incoming Germans; only Steiner, Krüger and Anselm survive. Triebig denies responsibility, but Steiner kills him and makes Krüger the platoon leader, telling him to look after Anselm. Steiner then goes hunting for Stransky.

The Soviets launch a major assault. Brandt orders Kiesel to evacuate, telling him that men like him will be needed to rebuild Germany after the war. Brandt then rallies the fleeing troops for a counterattack.

Steiner locates Stransky. But instead of killing him, he hands him a weapon, and offers to show him “where the Iron Crosses grow”. Stransky accepts Steiner’s “challenge”, and they head off together for the battle. The film closes with Stransky trying to figure out how to reload his MP40, while being shot at by an adolescent Russian soldier who resembles the boy soldier released by Steiner. When Stransky asks Steiner for help, Steiner begins to laugh. His laughter continues through the credits, which feature “Hänschen klein” again and segues to black-and-white images of civilian victims from World War II and later conflicts.

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