Plot

In 16th century Venice, when a merchant must default on a large loan from an abused Jewish moneylender for a friend with romantic ambitions, the bitterly vengeful creditor demands a gruesome payment instead.

In 1596, in the liberal Venice, Bassanio asks for a large amount to his friend, the merchant Antonio, to travel to Belmont and propose the gorgeous Portia. Antonio has invested all his money in his ships and borrows from the Jewish usurer Shylock, against whose people there is a great intolerance in Venice. Shylock proposes an unusual bond: if Antonio does not pay the money without any interest three months later, he might receive one pound of his flesh instead, at his choice. When Shylock's daughter Jessica runs away home with all his money and jewels, he becomes furious. Meanwhile, the load of Antonio sinks with three different vessels and he is not able to pay his debts with Shylock, and the Jew goes to court of Venice claiming the execution of his deal. In spite of many requests, his tough heart does not accept any other agreement further than the one established in their contract.—Claudio Carvalho, Rio de Janeiro, Brazil

Bassanio (Joseph Fiennes), a young Venetian, wants to travel to Belmont to woo the wealthy heiress Portia (Lynn Collins). He approaches his merchant friend Antonio (Jeremy Irons) for 3000 ducats needed to subsidize his travelling expenditures. As all of Antonio's ships and merchandise are tied at sea, Antonio approaches the Jewish moneylender Shylock (Al Pacino) for a loan. Shylock, spiteful of Antonio (whom the movie implies to be an ex-Jew converted to Christianity) because he had previously insulted and spat on him (for being a Jew), proposes a condition. If Antonio cannot repay the loan at the specified date, Shylock will be free to take a pound of Antonio's flesh from wherever he pleases. Bassanio tries to stop this, but Antonio, surprised by the moneylender's apparent generosity, signs the agreement. With money at hand, Bassanio departs with another friend, Gratiano (Kris Marshall).

At Belmont, Portia has no lack of suitors. Her father, however, has left a will stipulating each suitor to choose one of three caskets: one each of gold, silver, and lead. In order to be granted an opportunity to marry Portia, each man must agree in advance to live out his life as a bachelor were he to select wrongly. The suitor who correctly looks past the outward appearance of the caskets will find Portia's portrait inside and win her hand. Bassanio makes the correct choice, that of the leaden casket.

At Venice, all ships bearing Antonio's goods are reported lost at sea, leaving him unable to satisfy the bond. Shylock is determined to exact revenge from Christians after his daughter Jessica (Zuleikha Robinson) flees his home to convert to Christianity and elope with the Christian Lorenzo (Charlie Cox), taking a lot of Shylock's wealth with her. With the bond at hand, Shylock has Antonio arrested and brought before court.

At Belmont, Portia and Bassanio get married. A letter later announces that Antonio has defaulted on his loan. Shocked, Bassanio and Gratiano leave for Venice with money from Portia, to save Antonio's life. Unbeknown to the two friends, Portia and her handmaid Nerissa (Heather Goldenhersh) also leave Belmont.

In the court of the Duke of Venice, Shylock refuses Bassanio's offer, despite Bassanio increasing the repayment to twice the specified loan. He demands the pound of flesh from Antonio. The Duke, wishing to save Antonio but unwilling to set a dangerous legal precedent, refers the case to Balthasar, a young male "doctor of the law" who is actually Portia in disguise. The lawyer's clerk is Nerissa in disguise. Portia asks Shylock to show mercy, but Shylock refuses. Thus, the court allows Shylock to extract the pound of flesh.

At the very moment Shylock is about to cut Antonio with his knife, Portia points out a flaw in the contract. The bond only allows Shylock to remove the flesh, not blood, of Antonio. If Shylock were to shed any drop of Antonio's blood in doing so, his "lands and goods" will be forfeited under Venetian laws.

Defeated, Shylock accedes to accept monetary payment for the defaulted bond, but is denied. Portia pronounces none should be given, and for his attempt to take the life of a citizen, Shylock's property will be forfeit, half to the government and half to Antonio, and his life will be at the mercy of the Duke. The Duke pardons his life, and Antonio holds his share "in use" (that is, reserving the principal amount while taking only the income) until Shylock's death, when the principal will be given to Lorenzo and Jessica. At Antonio's request, the Duke grants remission of the state's half of forfeiture, but in return, Shylock is forced to convert to Christianity and to bequeath the rest of his property to Lorenzo and Jessica.

Bassanio does not recognize his disguised wife and offers to give her a present. First, she declines, but after he insists, Portia requests his ring and Antonio's gloves, Bassanio reluctantly giving the ring only after much persuasion from Antonio, as he had promised his wife never to lose it, sell it nor give it away.

At Belmont, Portia and Nerissa taunt their husbands before revealing what they did at the court. After all the other characters make amends, Antonio learns that three of his ships have returned safely after all.