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In 1984 East Germany (also known as the GDR or DDR) , Stasi Hauptmann Gerd Wiesler (HGW), a keenly idealistic supporter of the communist regime, is assigned to spy on playwright Georg Dreyman, who, Wiesler is told, is suspected of Western leanings. Stasi agents secretly enter Dreyman's apartment in order to install small microphones in the light switches and electric sockets, and cables in the walls, which connect the microphones to an attic space above the apartment, where Wiesler and an assistant take turns monitoring the activity below 24 hours a day, typing a report with anything they hear that might be relevant. A neighbour who happens to observe the agents is told that if she reveals their presence her daughter will be forced out of her spot in the university.
Wiesler soon finds out that the real reason why Dreyman is being spied on is that a minister and member of the Party's Central Committee is attracted to Dreyman's girlfriend, actress Christa-Maria; if Dreyman is arrested the minister will have free rein. This destroys Wiesler's motivation, as the job is not seriously investigating crimes against the Socialist state.