Pepe Le Moko leads a gang of jewel thieves in the Casbah of Algiers, where he has exiled himself to escape imprisonment in his native France. Inez, his girl friend, is infuriated when Pepe flirts with Gaby, a French visitor, but Pepe tells her to mind her own business. Detective Slimane is trying to lure Pepe out of the Casbah so he can be jailed. Against Slimane's advice, Police Chief Louvain capture Pepe in a dragnet, but his followers free him. Inez realizes that Pepe has fallen in love with Gaby and intends to follow her to Europe. Slimane knows the same and uses her as the bait to lure Pepe out of the Casbah.