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Ali G is the leader of Da West Staines Massiv, a fictional gang composed of a group of wannabe gangstas from Staines (a small, affluent, suburban town to the west of London); their chief rivals are Da East Staines Massive. Ali and Da West Staines massive are heartbroken to learn that their beloved local leisure centre (where they like to chill out and also where Ali teaches his keep it real classes) will be destroyed by the local council. Ali and his pals decide to protest this injustice. After he goes on a hunger strike and is spotted chained to some railings by the nefarious Deputy Prime Minister David Carlton (played by Charles Dance), he is drawn into a world of seedy political intrigue, as the Deputy Prime Minister tries to use Ali as a tool to destroy the Prime Minister's credibility. Ali is put forward as a candidate to be the M.P for Staines in a crucial by-election and manages to alienate most who cross his path, including feminists and the elderly. He manages to win the election by accidentally outing his chief rival candidate as a man who likes to 'suck off horses'.

Although originally seeming out of his depth as an M.P, Ali G's bizarre behaviour and solutions seem to actually work. Through ideas such as making more "relatable" education and ensuring the control of attractive (or "fit") women into England, Ali G becomes incredibly popular, meeting the Prime Minister's intentions and bringing his percentage in the polls up 22 percent & with this the PM decides to save Ali's leisure centre.

Before the Leisure Centre can be saved, a video emerges of Ali and his girlfriend (or me Julie) having sex in the PM's office. As Ali was wearing items of the PM's clothing at the time the media believe the video details the PM with a prostitute, forcing his resignation. This results in deputy PM David Carlton being made PM. Carlton, who despises Ali and immediately removes him from the cabinet, orders the destruction the aforementioned leisure centre. After turning down an offer to have sex with Carlton's secretary, Kate Hedges, in exchange for "keeping his mouth shut" about the videotape, Ali and the West Staines Massive must race against time to find the master copy of the CCTV tape proving the former PM's innocence, extending the olive branch to all the gangs all over Staines (even to the East Staines massive) to help them break into the vaults and retrieve said tape.

They do this successfully and manage to reinstate the original PM, save the leisure centre and generally live happily ever after.

This film features Baron Cohen's other character Borat in a meeting with Ali G, where a double was used for different shots.