Noam is an Israeli while Ashraf is a Palestinian. While guarding the frontier as part of his military time, Noam loses his papers. Ashraf collects these and manages to bring these back to his home, in Tel Aviv (nicknamed "The Bubble" as non-Jews are not tolerated there).
They soon fall in Love and manage to live together along with Noam flat's others inhabitant.
The problem is that after some time, Ashraf's Palestinian origins are exposed so he's got to get back.
Pretending to be French journalists, Noam and his friends manage to get through the Israeli lines and find him in his home.
While they hug, Noam's soon-to-become brother in law, Jihad, who's an extremist, discover them and blackmail Ashraf so that he marries his sister who he'll meet at Jihad's wedding (homosexuality is seen as a sin by islamists).
The day after the wedding, a suicide-blast occurs in Tel Aviv. One of Noam's friends is crippled.
The bomber was one of Jihad's friends. The Israeli forces retaliate and Ashraf's sister dies inadvertently. Ashraf is so pissed he takes Jihad's bomb jacket and goes instead of him in Tel Aviv where he triggers his bomb while hugging Noam for the last time.