In 1933 during the Great Depression, a young orphan named Annie is living in the Hudson Street Orphanage in New York City which is run by Miss Hannigan, a cruel alcoholic who forces the orphans to clean the building daily. With half of a locket as her only possession, she remains optimistic that her parents, who left her on the doorstep as a baby will return for her. Annie sneaks out with help from a laundry man named Mr. Jules Bundles and adopts a stray dog which she names Sandy. Annie is returned to the orphanage shortly after by a police officer.