The story is set in Jerusalem in the winter of 1959. Shmuel Ash, a sensitive student who has dropped out of university because his father's finances have collapsed, takes a live-in job as a companion to an elderly, incapacitated man, Gershom Wald, who needs someone to argue with. Wald learns from Shmuel that he has stopped working on his thesis, which dealt with Jewish views on Jesus. The conversation between these two protagonists revolves around the humanity of Jesus. Shmuel tells Wald about his alternative theory on Judas Iscariot: he says he believes Judas was not a traitor at all but, in fact, the truest believer in Jesus's divinity. Furthermore, a relationship develops between Shmuel and Wald's daughter-in-law, Atalia Abravanel, a sensual and mysterious woman. Shmuel falls in love with her in what becomes a tender coming-of-age tale.

A coincidental meeting between an Israeli boy and a Palestinian boy leads them to discover that reality is different than what they have been told.