As Abu Jassem (Jassem's father) asks Mahmoud to give back the house's mortgage, Mahmoud tries to borrow money from Abu Abdu (Abdu's father) to repay the debt. Abu Abdu agrees to lend Mahmoud the money, but only if Mahmoud gives him a strand from his mustache.
Mahmoud agrees to give Abu Abdu a strand from his mustache. As Abu Abdu gives Mahmoud the money, Mahmoud repays Abu Jassem and gains full ownership of the house.
As Sayfo arrives in the neighborhood, he speaks to the chief, informing him that he killed a colonizer in his own neighborhood and is seeking refuge with them. Abu Abdu beats his wives when one of them summons a midwife behind his back.
Sayfo quarrels with Hamdy, the worker at the coffee shop, after the latter badmouths Sayfo's friend Mahmoud, mocking him for pawning his mustache to Abu Abdu.
Abu Abdu incites Abu Daher (Daher's father) to reject Mahmoud's proposal to his daughter Fathia, telling him that Mahmoud still has an unpaid debt. Sayfo quarrels again with Hamdy and stabs his hand.
Hamdy weds the daughter of the neighborhood's security guard. Abu Abdu tells Mahmoud that the latter's mother is working as a seamstress behind his back. Sayfo starts working as a barber with Deebo.
As Sayfo kills two colonizers, he hides in the mayor's house, only to discover that the mayor is a member of the resistance, leading for a friendship to blossom between them. The occupation forces ransack the neighborhood as they look for Sayfo.
As Mahmoud prepares the money to retrieve his mustache, he is shocked when he discovers that Abu Abdu doesn't have the handkerchief that contains the strand from his mustache. As Mahmoud grows wroth, he takes the matter up to the chief.
The chief orders Mahmoud to keep the money until he gets his mustache back from Abu Abdu. As the neighborhood people talk about what happened, Mahmoud grows annoyed and decides to take revenge on Abu Abdu, but the neighborhood men stop him.
As Mahmoud asks for Fathia's hand again, Abu Daher agrees since the chief took Mahmoud's side in his conflict with Abu Abdu. Mahmoud celebrates his wedding to Fathia.
As Sayfo overhears Hamdy badmouthing Mahmoud again and talking about the matter of his mustache, Sayfo has a fistfight with Hamdy in the neighborhood. Sayfo wins and warns Hamdy against badmouthing Mahmoud again.
When two men from the occupation forces raid Abu Ahmed's house and assault his daughter, Abu Ahmed hurries to the chief's house to inform him of what happened.
In an attempt to resolve the issue, the chief gets his son to marry Abu Ahmed's daughter and asks him to keep the details of what happened a secret. When Abu Abdu finds Mahmoud's mustache, he gathers the men and returns it to Mahmoud.
When the police look for Sayfo, Mahmoud announces that the former is under his protection. Abu Abdu divorces his wife when he discovers that she is the one who hid Mahmoud's mustache. The chief plots with Sayfo and Mahmoud to kill the two assailants who raped Abu Ahmed's daughter.