In Ancient Egypt, Ema "Emmy" Hesire takes refuge in a pyramid, pleading to the gods that she find true love rather than enter an arranged marriage. Emmy suddenly vanishes before her mother's eyes. In 1987 Philadelphia, Jonathan Switcher is a sculptor working at a mannequin warehouse and finishes a single female mannequin he considers a masterpiece. His boss fires him for spending time trying to make his mannequins works of art rather than assembling several each day.
Jonathan takes a number of odd jobs and is fired each time for working too slowly because he tries to make each project artistic. His girlfriend Roxie Shield, an employee of the Illustra department store, dumps him, criticizing him as a flake. After his motorcycle breaks down in the rain, Jonathan passes the Prince & Company department store. Seeing his mannequin in the display window, he remarks she is the first work that made him feel like a true artist. The next morning, he saves store owner Claire Timkin from being injured by her own shop sign. Grateful, Claire orders store manager Mr. Richards (who is secretly paid by Illustra to sabotage Prince & Company so it can be bought) to give Jonathan a job. Viewed with suspicion by security guard Captain Felix Maxwell, Jonathan works with and befriends window dresser Hollywood Montrose. When Jonathan is putting together a window display, the mannequin he made comes to life with Emmy's spirit. She says she has existed for centuries as a muse, sometimes inhabiting the works of an artist she admires and inspires. She has encountered amazing people but has never found true love. Emmy explains the gods allow her life when she and Jonathan are unobserved, otherwise she is a mannequin.
With Emmy's help, Jonathan's window display is a massive success. Now placed in charge of visual merchandising, Jonathan asks Emmy to continue helping with the displays. Over several weeks, they create several popular displays, attracting new business while also deepening their relationship. Montrose realizes Jonathan loves a mannequin he created but doesn't judge him. Illustra's chief executive B.J. Wert sends Roxie to poach Jonathan but he refuses, saying he now works for people who value him. Annoyed by Felix's ineptitude and Richards' attitude towards Jonathan, Claire fires them. Deeply impressed with his work, Claire makes Jonathan vice president of the department store. One night, Jonathan takes Emmy through the city on his motorcycle, despite how unusual this seems to bystanders. He is witnessed by Richards and Felix, who conclude he is deeply fixated on a female mannequin.
Richards and Felix (who now works for Illustra) steal the female mannequins from Prince & Company. The next morning, Jonathan confronts Wert about the theft, who makes another job offer. Furious over Jonathan caring so much about the mannequin he calls Emmy, Roxie storms off. Jonathan follows Roxie while being pursued by security guards including Felix. Wert and Richards demand the police be called. Roxie loads the stolen mannequins into the store's large trash compactor, then is knocked out by the debris. As Hollywood holds the pursuers at bay with a fire hose, a janitor watches Jonathan jump onto the compactor's conveyor belt to save the mannequin that is Emmy. As Jonathan risks his life for her, Emmy comes to life. Once safe, she realizes she is truly and permanently alive again. Emmy thanks the gods for uniting her with her true love and Jonathan promises to love her forever.
While the janitor wonders if other mannequins will come to life, Hollywood arrives and realizes Emmy was alive the entire time. Felix and his fellow guards rush in, followed by Wert and Richards who demand the police arrest Jonathan. Claire arrives, revealing she has security video of Richards and Felix breaking and entering, and committing theft. She accuses Wert of conspiracy, and Jonathan adds the man also kidnapped Emmy. Wert fires Roxie as he is arrested and hauled away alongside Richards and Felix. Jonathan realizes the security footage may have shown him being romantic with a mannequin, but Claire coyly suggests he shouldn't worry about that. Some time later, Jonathan and Emmy are married in the store window of Prince & Company, with Claire as maid of honor and Hollywood as best man. Numerous pedestrians outside the store window applaud the wedding.
Andrew McCarthy as Jonathan Switcher
Kim Cattrall as Ema "Emmy" Hesire
Estelle Getty as Claire Timkin
James Spader as Mr. Daryl Richards (His first name is never mentioned in the film)
G. W. Bailey as Captain Felix Maxwell
Meshach Taylor as Hollywood Montrose
Carole Davis as Roxie Shield
Steve Vinovich as B.J. Wert
Christopher Maher as Armand
Phyllis Newman as Emmy's Mother
Phil Rubenstein as Mannequin Factory Boss
Andrew Hill Newman as Compactor Room Janitor