Continuity mistake: When Fat Sam's gang sings 'Bad Guys', just after Snake Eyes says "Look at me, I'm dancing.", a broomstick appears to the right of Mario's barber shop which is not in the previous shot. (00:31:00)
Two gangs: Fat Sam's Stacheto and Dandy Dan are rivals. Bugsy Malone goes to Fat Sam's bar where he meets wannabe movie star Blousey Brown. The bar is raided and Fat Sam states that it means war. Meanwhile, Dandy Dan is using the new Splurge Gun to destroy his enemies. Bugsy falls for Blousey but Fat Sam's girlfriend, Tallulah wants him for herself. Bugsy is asked to do a job by Fat Sam but it all ends up a mess because Fat Sam had hired Louey Begonzey who dies. Bugsy treats Blousey and says he'll get her tickets to Hollywood but someone steals his newly earned money. His rescuer is made a boxer by Bugsy. Blousey is upset about the tickets and begins to think about what happened.
Bugsy Malone: What's your name?
Blousey Brown: Brown.
Bugsy Malone: Brown? Sounds like a loaf of bread.
Blousey Brown: Blousey Brown.
Bugsy Malone: Blousey Brown? Sounds like a stale loaf of bread.
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