Act 1
Ponyboy Curtis, aged 14, is writing in a notebook, when he begins to introduce the world of the show — Tulsa, Oklahoma in 1967. He introduces his eldest brother Darrel who used to be a football star with "a ticket out," and his middle brother Sodapop, who recently had his heart broken. He introduces the Greasers, the more gritty, grounded counterparts to the upper-class Socs who "live like socialites." He specifically points out his best friend, Greaser Johnny Cade, who was recently jumped by Socs ("Tulsa, '67").
Ponyboy is jumped by the same Socs who attacked Johnny, led by their ringleader Bob. When the Socs attempt to cut Ponyboy's hair to make him look like a Soc, Ponyboy bites Bob, and then gets knocked unconscious. He wakes up to his brothers cleaning him up. The other Greasers — led by Dally, who just got out of county lockup — tell Ponyboy that he has officially become a Greaser, having gotten through this experience and come out the other end. Darrel worries that Ponyboy is making an irresponsible choice in cementing himself as a Greaser, but Dally makes it official anyway ("Grease Got a Hold").
Darrel is at home folding laundry, reflecting on his role as a pseudo-father to his younger brothers after their parents recently died in a car accident, as the rest of the gang make themselves comfortable in the Curtis house ("Runs in the Family"). Ponyboy comes home and asks Darrel if he can go to the drive-in with Johnny, Two-Bit, and Dally. Darrel agrees, as long as Ponyboy stays careful and isn't late for curfew, though he's still wary of Dally. Ponyboy and Sodapop discuss how Darrel's in a hard place right now, and Ponyboy asks his brother if, like himself, he dreams about his parents' accident. Sodapop says no, before asking Ponyboy about the book he's reading. Ponyboy and Sodapop reflect on the similarities they each see in the characters in the book "Great Expectations" by Charles Dickens. After Sodapop goes to sleep, Ponyboy keeps reading and following this train of thought ("Great Expectations").
Meanwhile, Dally finds Johnny outside his house, with sounds of intense arguing from inside. After it becomes clear this has happened before, Johnny tells Dally that he stays at home because he's scared his father will kill his mother. Dally offers to go inside the house himself, but Johnny doesn't let him. Dally gives Johnny a cigarette for warmth, a Hershey Bar, and his switchblade, which he teaches Johnny how to use.
The next day, Dally, Johnny, and Ponyboy all go to the drive-in, which is full of Socs. There, they meet Sherri "Cherry" Valance, who is seeing Bob. ("Friday at the Drive-in"). Dally keeps hitting on Cherry, claiming she's "not as innocent" as she may seem. Johnny tries to stop him, angering Dallas. Dally continues provoking Cherry, and she throws her coke on him. After Dally leaves, Cherry and her friend Marcia invite Ponyboy and Johnny to sit with them, before eventually asking Ponyboy to escort her to the concession stand. There, the two begin talking and realize that the other isn't exactly as stereotypes led them to believe — Cherry is dealing with fighting and demanding parents, and Ponyboy likes books and watching the sky change colors as the sun sets ("I Could Talk to You All Night").
Bob storms in, and he tries to tell Cherry not to talk to Greasers, leading to an altercation between the two groups — notably between Bob and Two-Bit. Cherry stops them from fighting but breaks up with Bob in doing so. Bob — who is clearly drunk — threatens Ponyboy. Cherry tells Ponyboy not to take it the wrong way if she doesn't say hello to him at school. Ponyboy and Johnny arrive at the Curtis home, late for curfew. An enraged Darrel begins shouting at his younger brother, and Ponyboy fights back. Sodapop is unable to quell the argument. As tensions escalate, Darrel slaps Ponyboy ("Runs in the Family" (reprise)). Ponyboy and Johnny run away. They sit and contemplate what could be next for them, dreaming of running far away ("Far Away From Tulsa").
Ponyboy and Johnny are stopped by the Socs, led by Bob. A fight breaks out, and it escalates quickly. The Socs attempt to drown Ponyboy in a water fountain, but before they can finish the job, Johnny stabs Bob with the blade Dally gave him, killing the Soc. By the time Ponyboy regains consciousness, the other Socs have fled. Ponyboy and Johnny run to Buck Merril's Bar searching for Dallas, who gives them money and directions to an abandoned church where they can hide for the time being. Ponyboy and Johnny do as they're told ("Run Run Brother").
Act 2
In Tulsa, the Socs and police are searching for Ponyboy and Johnny, who the Socs told the police were responsible for Bob's death. Darrel and Sodapop are interrogated about what they know or who they know that might know more, with the police singling out Dally as a specific person of interest, though they receive no information from him. At the abandoned church, Ponyboy and Johnny see their photographs in the newspaper and decide that Ponyboy needs to cut and bleach his hair to make him less recognizable. Cherry struggles with the death of her boyfriend while acknowledging that he was not a good person. Paul mourns with Cherry before accusing her of antagonizing Bob into fighting Ponyboy. Paul and the Socs then declare war on the Greasers, beating up Two-Bit as a "message", and plan a fight for next Saturday night at the same park where Bob was killed. ("Justice for Tulsa").
At the church, Ponyboy reflects on how he feels that he brings death and bad luck to others and that Johnny should just leave him at the church and run away on his own. Johnny refuses, saying he will stick by Ponyboy no matter what. ("Death's at My Door"). Meanwhile, at the Curtis house, Dally tells Darrel and Sodapop that no one will find Ponyboy and Johnny, but Darrel blames Dally for being a bad influence on the two boys. Dally counters that he spends more time with Ponyboy than Darrel does. He prepares to strike Darrel, but Sodapop stops the fighting before it can escalate further. Dally backs off but walks away in anger. Darrel worries that he will never be able to help Ponyboy, and contemplates giving up. Sodapop reminds him that they don't give up on family. Ponyboy reflects on this from the church, on his own ("Throwing in the Towel").
Ponyboy recites a poem ("Nothing Gold Can Stay" by Robert Frost) to Johnny, as they watch the sunrise. Dally arrives at the church, and tells Ponyboy and Johnny that there are kids at the church having a field trip or picnic of some kind. He gives Ponyboy a letter from Sodapop about how the house isn't complete without Ponyboy. Darrel is seen on stage, representing his concern and love for Ponyboy as well. ("Soda's Letter"). Johnny decides he wants to return to Tulsa and turn himself in. Dally is adamant that this is a bad idea, telling the boys that it's always better to run away from trouble like he has. He also reveals that the Socs and Greasers' rivalry has only worsened and that there will soon be a rumble. The winner gets control over the park. During this conversation, Ponyboy throws a cigarette on the ground behind him.
Dally tells Ponyboy and Johnny that he is going to drive them to Iowa where someone is going to take them in. But before they can leave, the church catches on fire from the cigarette Ponyboy threw away. Ponyboy and Johnny run into the flames to rescue the kids Dally had mentioned earlier, turning them into local heroes back in Tulsa — where they return ("Hoods Turned Heroes"). Ponyboy ends up not badly injured, but a beam falls on Johnny's back, and he can no longer feel his legs. Dally says he will not be holding back at the rumble. Cherry comes to the hospital room and tells Ponyboy that she cleared him and Johnny of all murder charges by giving a statement to the police. She begs Ponyboy to not fight in the upcoming rumble ("Hopeless War").
Nevertheless, Ponyboy feels he has to fight for Johnny, and joins the Greasers in preparing for the rumble. Darrel shows up, ready to fight, and asks Ponyboy to let him fight on his behalf. Ponyboy still refuses, and all three Curtis brothers prepare to fight in the rumble ("Trouble"). Darrel and Paul — once best friends, now rivals — start fighting one-on-one, before everyone breaks out into an all-out fight. The Greasers and Socs brutally fight one another in the pouring rain, and eventually, the Greasers win. They go visit Johnny in the hospital after the fight. Johnny tells Ponyboy to "stay gold," and then dies. All the Greasers become emotional, but Dally in particular. Overwhelmed with grief, he storms out of the hospital. He runs to the train tracks — Ponyboy narrates that he's so fast, no one can catch him — and lets himself get hit by an oncoming train, killing him ("Little Brother").
Ponyboy is distraught, not speaking, and staring at the television while his brothers try to help him. They reveal he's been like that for two weeks. Darrel acknowledges that although Johnny and Dally are both heroes, they are both gone. A stunned and enraged Ponyboy pins Darrel to the ground, but Sodapop tearfully stops them, fed up with the constant fighting, reminding them that they only have each other and have to look out for each other. Cherry then stops by, revealing she started volunteering at the hospital. She found a pile of Johnny's clothes and thought Ponyboy should have them. She tells Ponyboy that Johnny left a note for him in one of his pockets. The note — which Sodapop reads to Ponyboy, as Ponyboy is too emotional to even open it — reveals that Johnny had time to think before he died, and that he understands the meaning of "Nothing Gold Can Stay" — which neither of them understood when Ponyboy first recited it at the church. He again tells Ponyboy to "stay gold," and asks him to remind Dally of the good in the world ("Stay Gold").
Ponyboy tells Darrel and Sodapop that while he loves being a Greaser, that's not all there is to him, which both of his brothers accept. Ponyboy sits down to eat dinner with the two of them. Sodapop asks him about what he was writing in his notebook, and Ponyboy reveals that it's a story of the events that have happened throughout. Eventually, Darrel and Soda read it out loud, revealing it to be the opening narration to "The Outsiders" novel (Finale ("Tulsa '67")).
