Set in present-day Reykjavík, Fiasco draws a narrative circle of interconnecting stories in which three members of the Bardal household deal with the secret loves in their lives. Karl, an old age pensioner, is busy chasing after an amnesic old screen legend. Julia, Karl's granddaughter, is torn between a mediocre bank manager and a wild sailor, and tells them both she is pregnant. But is she really? Steingerdur, Julia's mother, has a wild crush on a preacher who has a serious drinking problem, and ends up with a dead stripper in his Jacuzzi. The characters cross each other as the film progresses, until the three interwoven strands of the story finally come together in an explosive and hilarious crescendo full of surprises.
In 1940, when there are British forces in Iceland, a country boy goes to Reykjavik to work for the army and to find what became of his childhood sweetheart. He soon discovers that she's having an affair with a British soldier. Moreover, he starts to suspect that the soldier, instead of being an officer and a gentleman, is in fact a very peculiar kind of monster.
A young couple moves into an old house. She teaches deaf children, he is a musician, working on his own compositions. Their separate worlds, one silent, the other full of sounds, create a vivid pattern of contrasts, which affect their emotional lives and their living together. From the time they move into the house, they are strangely aware of something odd, especially she, while he concentrates more and more upon his work. A series of incidents adds to her growing uneasiness about the house. Its past seems to creep in on her. She feels as if some tragedy must have befallen the people that lived there before, but when she starts asking around she gets few answers. There is something about the house that seems to be on the verge of overpowering her - something that in an unexpected way is related to her origins and permanently affects her life and destiny.
Middle aged bourgeoisie couple lives a loveless life along with their beautiful eighteen year old daughter. The man has a passionate desire for the girl who in fact is not his real daughter but the fruit of an affair of the woman early in the marriage. This leads to tragic events.
Ragnar has left his family farm and works as a taxi driver in Reykjavík in the early sixties. He's drawn to the beautiful but unhappy girl Gogo and hopes to build a better life with her. But she's a lost soul and their brief romance results in tragedy.