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Two Hands could be categorised as a love story, a black comedy, an action thriller, a super-natural, an anti-crime flick or art house thinking movie. It is all of these but none of these. The movie is based in Sydney's Kings Cross and begins with a deceased climbing from the depths of hell to save his little brother from following in his footsteps. He stops to explain the principle of ying-yang: that inside every good person, there is a little bit of bad, and inside every bad person, there is a little bit of good; thus setting the tone for a movie in which there are no bad guys or good guys, rather there are only people whose little slip-ups have dire consequences. Every action has a reaction and each peripheral story ricochets against another to culminate in the climax of a central story.

Jimmy (Heath Ledger) is befriended by area gangster Pando (Bryan Brown). Despite being a gangster, Pando isn't portrayed as a bad character. He is a family man, has no prejudices and is quite likeable. Pando gives Jimmy $10,000 to deliver but Jimmy loses it to two young street kids. Knowing the consequences of the loss, he is left with no alternative but to rob a bank to repay the loot. He gets some help from friends with experience in robberies, who like Pando, have a family. Eventually he repays the money to Pando who is then gunned down by one of the street kids whose mate was killed by Pando driving too fast. The street kids are also the ones who stole the money initially.