The story unravels during the last decade of the 19th century. Early one morning a boat brings Swedish immigrants to Denmark's shores. On board are Pelle, eight years old, and his father Lasse. They are looking forward to a better life in their adopted country, but it turns out that hard work and poverty are to be their lot. Pelle, however, never gives up his dreams. Though he loves his father dearly and small rays of hope point toward a better life in Denmark, never-ending degradations and countless disappointments result in his departure to seek his fortune in the New World, in America. The film is based on Martin Andersen Nexo's novel of the same name.

Born in 1948, Bille August studied photography at the Christer Stroholm School in Stockholm and at the Danish Film Institute. He worked as a cinematographer on several Swedish cinema and TV films. In 1978, he made his first feature film, IN MY LIFE, after which he started working for television, directing a few TV films and a series, BUSTER'S WORLD, which was later developped into a feature film.